OST-1997-2605 - EAS at Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney and Wolf Point, MT

By this order, the Department is revising the service levels and subsidy rate for the EAS operated by Big Sky Transportation d/b/a Big Sky Airlines, between the seven Montana communities listed above and Billings, Montana, beginning October 1, 1997, or when the new service pattern is implemented, whichever is later, through the remainder of the carrier’s present rate term, which ends on Nov. 30. 1998.

By this order, the Department is tentatively reselecting Big Sky Transportation Co., d/b/a Big Sky Airlines, to provide essential air service at the seven Montana communities namedabove for the two-year period beginning December 1, 1998, at an annual subsidy rate of $4,697,222, and providing for objections or competing proposals from other interestedcarriers.

Big Sky has now submitted a final rate proposal based on its actual experience and, as a result of discussions with Department staff, the carrier has agreed to a final subsidy rate of $5,716,559 annually for the period from October 1, 2001, through November 30, 2002, the end of Big Sky's current two-year rate term.

Order 2002-10-40, the Department (1) requests proposals from carriers interested in providing essential air service at the seven Montana communities, and (2) extends the current subsidy rate for the incumbent, Big Sky Transportation Co., d/b/a Big Sky Airlines, as an interim rate beyond November 30, 2002, the end of the current rate term, until the carrier selection case initiated here is concluded.

By Order 2000-11-11, November 13, 2000, the Department selected Big Sky to provide subsidized service at the seven Montana communities listed above by operating 12 round trips a week from Sidney to Billings, 5 round trips from Sidney to Bismarck, and 12 round trips a week from the other six communities to Billings with 19-seat Fairchild Metro III aircraft for the two-year period through November 30, 2002, at an annual subsidy rate of $4,952,234. However, by Order 2002-8-3, August 7, 2002, the Department revised Big Sky's annual subsidy rate to $5,716,559, effective October 1, 2001, through the remainder of the rate term, in recognition of the lower revenue and higher costs experienced by the carrier as a result of the September 11 terrorist attacks.

Big Sky has operated subsidized service at the seven communities since 1980, when it replaced Frontier Airlines, Inc. During the year ended June 30, 2002, the most recent 12-month period for which data are available, Glasgow averaged 6.3 enplanements a day, Glendive 3.1, Havre 3.0, Lewistown 2.3, Miles City 3.2, Sidney 6.7 and Wolf Point 4.8. On a composite basis, the seven communities averaged a total of 29.4 enplanements a day, a decline of about 18 percent from the previous 12-month period. The decline was doubtlessly attributable to the September 11 terrorist attacks; as we noted in Order 2002-8-3, the communities' traffic during the nine months following the attacks was 22 percent below the same nine-month period a year earlier.

Order 03-12-4
OST-97-2605 - EAS at Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney and Wolf Point, MT

Proposals were submitted in response to our request in Order 2002-10-40. However, those proposals are now a year old, and we have consequently decided to request fresh proposals from all interested carriers now. Carriers should file their proposals within 30 days of the date of service of this order. At the end of that period, our staff will docket the proposals, thereby making them public, and direct each carrier to serve a copy of its proposal on the civic parties and other applicants. Shortly afterwards, we will provide a summary of the proposals to the communities and ask them to submit their final comments. We will give full consideration to all proposals that are timely filed.

By Order 2000-11-11, November 13, 2000, the Department selected Big Sky to provide subsidized service at the seven Montana communities listed above by operating 11 Sidney-Billings, 5 Sidney-Bismarck, 1 Sidney-Glendive-Miles City-Billings, 11 Glendive-Miles City-Billings, 12 Glasgow-Wolf Point-Billings and 12 Havre-Lewistown-Billings round trips each week with 19-seat Fairchild Metro III aircraft for the two-year period from December 1, 2000, through November 30, 2002, at an annual subsidy rate of $4,952,234.1 By Order 2002-8-3, August 7, 2002, the Department subsequently revised Big Sky's annual subsidy rate to $5,716,559, effective October 1, 2001, through the remainder of the rate term, in recognition of the lower revenue and higher operating costs experienced by the carrier as a result of the September 11, 2001, terrorist attacks.

Big Sky has operated subsidized service at the seven communities since 1980, when it replaced Frontier Airlines, Inc. During the year ended September 30, 2003, the most recent 12‑month period for which data are available, Glasgow averaged 6.6 enplanements a day, Glendive 3.0, Havre 3.6, Lewistown 2.6, Miles City 3.4, Sidney 6.0 and Wolf Point 4.5. On a composite basis, the seven communities averaged a total of 29.7 enplanements a day, an improvement of 2.1

Service - Twelve round trips per week between each city and Billings, MT, plus five round trips per week between Sidney and Bismarck ND. All service will be provided with nineteen passenger Metro III or Metro 23 aircraft. Passenger revenues are forecast on a market by market basis, and are expected to increase in each year of the two-year period. Freight revenues are forecast at their historical level of one percent of the passenger revenues.

All flights will have the benefit of code‑share services that are in place with Northwest Airlines, America West Airlines and Alaska Airlines at Billings, and with Northwest Airlines at Bismarck. Big Sky also has passenger interline agreements with Delta Airlines and United Airlines that provide additional connecting flight service opportunities at Billings and Bismarck.

Mesa Air Group, Inc on behalf of its wholly owned subsidiary Air Midwest Inc. is pleased to submit this proposal to provide Essential Air Service (EAS) to the Montana communities of Glasgow, Glendive, Havre, Lewistown, Miles City, Sydney, & Wolf Pointe. All of the flight options in this proposal will be operated by Beech 1900D aircraft. Air Midwest has a code share relationship with America West and we plan to offer these flights under America West Express brand. The Beech 1900D is a pressurized turboprop aircraft with 19 seats and a standup cabin. Currently Air Midwest operates the largest fleet of Beech 1900's in the world. The proposal consists of a two round trip schedule to Billings serving each city. This option requires $4,954,922 per year in subsidy.

After meeting with the Wolf Point City Council Airport Committee, it is their recommendation to stay with Big Sky Airlines in providing scheduled air service under the essential air service program.

We are writing this letter to show our support for Big Sky Airlines and the services they provide to our area. Big Sky Airlines is a Montana based company which is very important for our economy. They have provided uninterrupted service in Montana since 1978 and to our area for many of those years. We feel it is a very necessary service. Sidney is in a somewhat remote area, and we appreciate the access to airline service.

Letters in Support of Big Sky

Order 04-2-10
OST-97-2605

Issued February 9, 2004 | Served February 12, 2004

Order Selecting Carrier and Establishing Subsidy Rates

By this order, the Department is selecting Big Sky Transportation Co., d/b/a Big Sky Airlines, to continue providing essential air service at seven Montana communities for a new two‑year period beginning March 1, 2004, at subsidies of $5,765,139 for the first year and $5,790,938 for the second year.

Reaching a decision is therefore principally a matter of weighing Big Sky's community support against Air Midwest's lower subsidy requirement. The communities' support for Big Sky is overwhelming -- in fact, unanimous. Air Midwest's subsidy requirement is roughly $800,000 a year less than Big Sky's, spread over seven communities, but we must also note that Big Sky's subsidy requirements for the next two years represent de minimis increases over its current subsidy. We are willing to accede to the communities' unanimous preference when the result requires almost no additional program spending.

By: Karan Bhatia

February 17, 2004

Re: Ex Parte Letter to Max Baucus

By: Karan Bhatia

Order 2005-10-10
OST-1997-2605

Issued October 13, 2005 | Served October 18, 2005

Order Requesting Proposals

Big Sky has operated subsidized service at the seven communities since 1980, when it replaced Frontier Airlines, Inc. During the year ended September 30, 2005, the most recent 12-month period for which data are available, Glasgow averaged 6.4 enplanements a day, Glendive 3.2, Havre 4.8, Lewistown 2.5, Miles City 3.6, Sidney 10.6 and Wolf Point 5.4. On a composite basis, the seven communities averaged a total of 36.6 enplanements a day, an improvement of 36 percent over the previous 12-month period.

We expect proposals consisting of service, at a minimum, with two-pilot, twin-engine aircraft with at least 15 passenger seats, and offering 12 round trips a week from each of the communities (except 17 from Sidney) to Billings. As discussed earlier, such service is consistent with what the Department has traditionally subsidized, and fully satisfies the communities' essential air service requirements.

By: Todd Homan

http://www.midrivers.com/~airport/ - Glendive
http://russell.visitmt.com/listings/11364.htm - Havre
http://www.lewistownmunicipalairport.com/ - Lewistown

November 17, 2005

Proposal of Big Sky Airlines

The Big Sky proposal meets the requirements set forth in the Order Requesting Proposals. The flights are well timed and meet the requirements of the communities. As noted in the Order Requesting Proposals, the service pattern includes: 11 Sidney-Billings round-trips each week 6 Sidney-Glendive-Miles City-Billings round-trips each week 6 Glendive-Miles City-Billings round-trips each week 12 Glasgow-Wolf Point-Billings round-trips each week 2 Havre-Lewistown-Billings round-trips each week.

Big Sky currently operates a pattern of service which provides 5 additional weekly nonstop round‑trip flights between Sidney and Billings, in lieu of 5 two stop flights through Glendive and Miles City. The Sidney community should be aware that Big Sky intends to continue this enhanced level of service.

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

http://www.bigskyair.com/

November 17, 2005

Proposal of Great Lakes Aviation

Great Lakes' proposals all contemplate non-stop or one-stop, conveniently timed service to and from Billings or Denver. As in our arrangement with United Airlines and Frontier Airlines in Denver, Great Lakes will provide service at these Montana points as Great Lakes Airlines to BIL or DEN, and with code sharing partner United Airlines and Frontier Airlines beyond the Hubs to the extent of their route structure. In addition, Great Lakes maintains interline ticket and baggage agreements with the majority of the other carriers serving the Hubs, which allows for maximum utility of our air service to the airline customers flying in and out of these points in Montana. The Company is prepared to assist the Community in a detailed review of a transition to a new Hub designation as it relates to our Denver proposal.

As part of our Sidney bids, it is the intent of Great Lakes to operate the morning departure from Sidney and the evening return trip coming from and going to Williston, North Dakota. Up-line service to Williston, North Dakota needs to be authorized. Additionally, Great Lakes will offer the afternoon Sidney round-trip as a circle trip operated via Dickinson, North Dakota. Three of four flight legs to / from Sidney will be operated non-stop to/from Denver. Consistent with the determination in selecting air carriers on Essential Air Service routes, Great Lakes has not included any costs for the Williston service nor station costs for the Dickinson service in these proposals. Additionally, Great Lakes has added a $490,000 revenue credit to Sidney in proposals #2 and #3 for revenues earned from up-line points.

Proposals contemplate the use of either a 19 seat Beech 1900D or a 30 seat Embraer EMB-120 aircraft. Both fleet types are currently operated by the Company.

By: Great Lakes, Nick Wangler, 307-432-7050, nwangler@greatlakesav.com

http://www.greatlakesav.com/

November 18, 2005

Letter to Wilmer Zeller, Mayor of Glasgow, MT

As you know, by Order 2005-10-10, October 13, 2005, the Department requested proposals from carriers interested in providing scheduled air service at Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney and Wolf Point under the essential air service program for a new two-year period beginning March 1, 2006, with or without subsidy.

In response to our request, we have received proposals from two carriers: Big Sky Transportation Co., d/b/a Big Sky Airlines, and Great Lakes Aviation, Ltd. Copies of the carriers’ proposals are enclosed.

We would appreciate receiving your final comments on the carriers’ proposals before we make our recommendation to the Assistant Secretary. We ask that you submit your comments within two weeks of receipt of this letter.

By: Dennis DeVany

http://www.glasgowmontana.com/ - City of Glasgow, MT

November 18, 2005

Letter to Jerry Jimison, Mayor of Glendive, MT

By: Dennis DeVany

http://www.glendivechamber.com/ - City of Glendive, MT

November 18, 2005

Letter to Bob Rice, Mayor of Havre, MT

By: Dennis DeVany

http://www.ci.havre.mt.us/ - City of Havre, MT

November 18, 2005

Letter to Kevin Myhre, Mayor of Lewistown, MT

By: Dennis DeVany

http://www.ci.lewistown.mt.us/ - City of Lewistown, MT

November 18, 2005

Letter to Chris Grenz, Mayor of Miles City, MT

By: Dennis DeVany

http://www.mcchamber.com/ - City of Miles City, MT

November 18,2005

Letter to Bret Smelser, Mayor of Sidney, MT

By: Dennis DeVany

http://www.sidneymt.com/ - City of Sidney, MT

November 18, 2005

Letter to Matt Golik, Mayor of Wolf Point, MT

By: Dennis DeVany

http://www.wolfpoint.com/ - City of Wolf Point, MT

December 6, 2005

Letter of City of Sidney, Montana in Continued Support of Big Sky Airlines

On behalf of the City of Sidney, Montana, I would like to continue our support of Big Sky Airlines as an EAS carrier in our area. ig Sky has offered the Sidney community excellent service and has continued to remain competitive. Their flight times from Sidney are excellent. t is our hope that Big Sky Airliens can continue to serve our area.

By: Mayor Bret Smelse

December 16, 2005

Support of Montana Essential Air Service Task Force for Big Sky Airlines

The Montana Essential Air Service Task Force met on December 14 with Big Sky Airlines and Great Lakes Aviation to discuss and consider each proposal.

The task force strongly supports retention of Big Sky Airlines as the carrier to provide service to these seven essential air service communities.

By: Task Force, John Rabenberg

December 18, 2005

City of Wolf Point in Support of Big Sky Airlines Proposal

After careful consideration, the City of Wolf Point requests that you award Big Sky Airlines the essential air service contract for the following reasons. Big Sky has already demonstrated their commitment to providing a very reliable service to our community. They are a local Montana based company providing hundreds of good paying jobs for our state and area. Their positive economic impact is not to be overlooked plus they are considered part of our community. They have made a considerable investment in upgrading their planes, facilities and service. Even though the Great Lakes proposal was less, their presentation and answers to our questions, left considerable doubt in our minds that they could effectively handle the job as well as Big Sky.

By: Mayor, Matt Golik

http://www.wolfpoint.com/ - City of Wolf Point

December 19, 2005

Northeast Montana Health Services in Support of Big Sky Airlines Proposal

We respectrlly request that you award the EAS contract to Big Sky Airlines. Big Sky has operated successfiity and provided reliable on-time sewice to our community for twenty-five years. In a state that ranks at or near the bottom of every economic performance liat, it has been a pleasure to do business with a Montana based company that provkles hundreds of good paying jobs tbr our state. We don't want to lose them.

By: Health Services, Tom Ault

December 19, 2005

Two Rivers Economic Growth, Inc. in Support of Big Sky Airlines Proposal

Two Rivers Economic Growth, Inc. strongly supports the Montana Essential Air Service Task Force’s recommendation of retention of Big Sky Airlines as the carrier to provide service to the seven essential air service communities of Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney and Wolf Point, Montana.

By: Two Rivers, Larry Mires

December 19, 2005

Valley County Board of County Commissioners in Support of Big Sky Airlines Proposal

The Board of County Commissioners strongly supports the Montana Essential Air Service Task Force's recommendation of retention of Big Sky Airlines as the carrier to provide service to the seven essential air service communities of Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney and Wolf Point, Montana.

By: Board of Commissioners, David Pippin

December 20, 2005

Yellowstone County in Support of Big Sky Airlines Proposal

I would like to express my support of Big Sky Airlines as the designated EAS carrier for the seven EAS cities in Central and Eastern Montana. Big Sky has provided reliable service to these communities for many years with reasonable ticket prices.

By: Yellowstone County, James Reno

December 20, 2005

Yellowstone County in Support of Big Sky Airlines Proposal

I would like to express my support of Big Sky Airlines as the designated EAS carrier for the seven EAS cities in Central and Eastern Montana. Big Sky Airlines has been operating since 1978. The service Big Sky Airlines provides is crucial for citizens in our rural areas to have access to our regional medical centers and other facilities. Big Sky has continued to provide reliable service with reasonable ticket prices to these communitites for many years.

By: Yellowstone County, John Ostland

December 20, 2005

City of Glasgow in Support of Big Sky Airlines Proposal

The City of Glasgow strongly supports the Montana Essential Air Service Task Force's recommendation of retention of Big Sky Airlines as the carrier to provide service to the seven essential air service communties of: Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney, and Wolf Point, Montana.

By: Mayor, Daniel Carey

December 19, 2005

Roosevelt County in Support of Big Sky Airlines Proposal

After visiting with Mayor Golik from the City of Wolf Point we would like to respond to the essential air service proposals from Great Lakes and Big Sky.

Great Lakes may have a lower proposal; however, there may be gray areas such as their proposed amount for fuel costs. With the fluctuation of today’s fuel prices, it is hard to understand the differences between the two proposals for fuel. How would Great Lakes recoup their costs if the fuel prices were to fluctuate again?

We take great pride in our State born companies and feel it is important that we continue to support and strive to maintain all of our new economical growth. We see the loss of Big Sky as being a detrimental move for the State as well as our community.

By: Gary MacDonald, Chairman
400 2nd Avenue South
Wolf Point, MT 59201

December 15, 2005

County of Dawson - Support of Big Sky Airlines Proposal

This letter is to concur with Montana Central Air's recommendation to support Big Sky Airlines' continuation of service to Montana and Dawson County Airport.

By: Board of Commissioners, William LaBree

December 17, 2005

Support Comments for Big Sky Airlines Proposal of Montana Rep. Walter McNutt

I live in Sidney MT and have had the opportunity to observe Great Lake's operation in Williston North Dakota. I would say at the least it has not been a satisfactory operation. All the promises made to the City of Williston of stationing aircraft there, basing mechanics there and regular, dependable flight schedules, in my opinion not one promise or commitment has been kept. Over the years there have been many flights cancelled with no notice except a note on the door of the terminal. The mechanics are no longer in Williston nor the aircraft that were to be based there. I also understand how difficult it is to provide air carrier service in uncertain times, however their commitments to the City of Williston have not been fulfilled.

Therefore I have no choice but to recommend that Big Sky Airline be allowed to continue to serve Sidney as well as the other 6 communities in Montana. A change in air carrier service would not be in the best interest of any of the communities now receiving this service.

By: Walter McNutt

Order 2005-12-20
OST-1997-2605

Issued December 30, 2005 | Served December 5, 2005

Order Selecting Carrier and Establishing Subsidy Rate - Bookmarked

By this order, the Department is selecting Big Sky Transportation Co., d/b/a Big Sky Airlines, to continue providing essential air service at seven Montana communities for a new two-year period beginning March 1, 2006, at a subsidy of $6,838,934 annually.

The communities’ support for Big Sky is unanimous. On the other hand, the subsidy requirements for Great Lakes’ Options 1 and 2 are roughly $400,000 and $700,000 a year, respectively, below Big Sky’s subsidy requirement, spread over seven communities. Although close, on balance, we conclude that Big Sky’s solid community support, its long history of reliable service in the markets at issue, and its marketing alliances at the communities’ preferred hub of Billings outweigh Great Lakes’ lower subsidy requirements and alternative service features for Sidney.

By: Michael Reynolds

December 20, 2005

City of Glendive in Support of Big Sky Airlines

I am writing this letter on behalf of and in support of Big Sky Airlines as our Essential Air Service Carrier for the City of Glendive, Montana. Big Sky Airlines has provided this service in our area for over 20 years and has been a reliable and conscientious partner in a very needed service, not only in Glendive, but in all of Eastern Montana.

By: Mayor, Jerry Jimison

Order 2007-9-6
OST-1997-2605

Issued September 7, 2007 | Served September 12, 2007

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at the seven Montana communities listed above for the two-year period beginning March 1, 2008, with or without subsidy. We request that carriers interested in providing essential air service at Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney and/or Wolf Point, Montana, submit their proposals, with or without subsidy requests, no later than October 18, 2007.

With respect to the Montana communities at issue here, we expect proposals consisting of service, at a minimum, with two-pilot, twin-engine aircraft with at least 15 passenger seats, and offering 12 round trips a week from each of the communities (except 17 from Sidney) to Billings. Such service is consistent with what the Department has traditionally subsidized, and fully satisfies the communities’ essential air service requirements.

The communities’ essential air service determinations, as last established by Order 1994-10-4, October 6, 1994, required at least two round trips to Billings each weekday and weekend with no more than one intermediate stop (nonstop-only for Lewistown), providing a minimum of 10 inbound and outbound seats for Glasgow, 5 for Glendive, 8 for Havre, 6 for Lewistown, 5 for Miles City, 13 for Sidney, and 10 for Wolf Point.

By: Todd Homan

October 18, 2007

Response of Big Sky Transportation d/b/a Big Sky Airlines to Order Requesting Proposals

As the Department is well aware, Big Sky's program of refleeting to the Beechcraft 19000 aircraft has improved the service reliability and customer comfort we provide to our customers. Big Sky has also taken the lead in working with the TSA to "federalize" the security at these communities. Based on recent discussions with the TSA and our congressional delegations, we believe that local security screening will be implemented which will permit customers to make connections in Billings without having to endure the lines and time at Billings to clear the TSA process. This action will result in enhanced connecting opportunities by eliminating the need to bus passengers upon their arrival in Billings. Big Sky believes that this will result in increased passenger traffic.

Big Sky will continue to implement aggressive marketing programs to stimulate the Montana EAS markets and will continue to provide on‑line connecting and through flight service to Helena, Missoula, Sheridan, Denver, Boise and Portland.

Based on Big Sky's cost and estimated passenger traffic and revenue, an Essential Air Service subsidy of $8,473,617 is required, based on a 96% controllable completion factor. This represents an increase of $1,634,683 from the current rate, of which $946,093 is increased fuel expense. Non-fuel related expenses have increased $688,590, representing a 13.6% increase in the cost per asm. The continuing dramatic increase in the cost of fuel, contractual labor rates and the impact of increased fuel costs on our suppliers have resulted in this increased expense level.

By: Big Sky, Fred deLeeuw, 406-247-2931, fred.deleeuw@bigskyair.com

October 19, 2007

Response of Great Lakes Aviaiton to Order Requesting Proposals

The attached proposals contemplate conveniently timed connecting services to interline carriers and/or our code share partners United and Frontier. Our code share agreements will offer these Montana communities the greatest competitive opportunity available in the Rocky Mountain Region. Great Lakes maintains interline ticketing and baggage agreements with most air carriers providing connecting service at the Billings and Denver hubs. Optional service transitions to our Denver hub can be provided for the same subsidy dollars when, and if, a community coordinated and supported air service transition plan is agreed upon.

Currently the communities are not serviced by the TSA with passenger security screening as has been mandated by Congress. Great Lakes believes that in order to stimulate incremental traffic, the product standard must be raised to an equivalent level of service that is currently experienced through out the National Air Transportation System.

By: Great Lakes, Michael Matthews, 307-432-7030, mmatthews@greatlakes.com

October 19, 2007

Re: Request for Comments from City Manager of Lewistown
Re: Request for Comments from Mayor of Glasgow
Re: Request for Comments from Mayor of Glendive
Re: Request for Comments from Mayor of Havre
Re: Request for Comments from Mayor of Miles City
Re: Request for Comments from Mayor of Sidney
Re: Request for Comments from Mayor of Wolf Point

Big Sky requests a subsidy of $8,473,617 annually, based on services consistent with those that the Department has traditionally subsidized at the communities, as outlined in Order 2007-9-6. Specifically, Big Sky's subsidy request is based on 11 Sidney-Billings, 6 Sidney-Glendive-Miles City-Billings, 6 Glendive-Miles City-Billings, 12 GlasgowWolf Point-Billings and 12 Havre-Lewistown-Billings round trips each week, operated with 19-seat Beech 1900 aircraft. However, Big Sky states that it intends to continue operating the higher level of service at Sidney at that it already offers -- i.e., 17 nonstop round trips plus one two-stop round trip, via Glendive and Miles City, to Billings each week. The Sidney community should understand that Big Sky operates the higher service level at its own discretion; if the Department selects Big Sky, it will authorize subsidy for, and thus require, the traditional service level only.

Great Lakes requests a subsidy of $8,201,992 annually to operate 17 Sidney-Billings, 12 Glendive-Miles City-Billings, 12 Glasgow-Wolf Point-Billings and 12 HavreLewistown-Billitigs round trips each week, operated with 19-seat Beech 1900 aircraft. Great Lakes also offers the prospect of changing the hub from Billings to Denver if such a change can be agreed upon with the communities. Great Lakes' all-nonstop service for Sidney exceeds the level for which the Department has traditionally authorized subsidy, but at a subsidy requirement slightly below Big Sky's. Because Great Lakes' subsidy requirement is based on the higher service level the Department will require that service level if it selects Great Lakes.

By: EAS & Domestic Analysis, Dennis DeVany

November 13, 2007

Montana EAS Task Force in Support of Big Sky Airlines

The task force supports retention of Big Sky Airlines as the carrier to provide services to these seven EAS communities.

By: John Rabenberg, 406-525-8318

Order 2007-11-21
OST-1997-2605

Issued Novmeber 26, 2007 | Served November 29, 2007

Order Selecting Carrier and Establishing Subsidy Rate

By this order, the Department is selecting Big Sky Transportation Co., d/b/a Big Sky Airlines, to continue providing essential air service at seven Montana communities for a new two-year period beginning March 1, 2008, at a subsidy of $8,473,617 annually.

By: Michael Reynolds

Order 2007-12-22
OST-1997-2605

Issued December 21, 2007 | Served December 28, 2007

Order Allowing Suspension of Service, Selecting a New Carrier and Establishing New Subsidy Rates

By this order, the Department is (a) allowing Big Sky Transportation Co., d/b/a Big Sky Airlines, to suspend its subsidized essential air services at seven Montana communities on the date that Great Lakes Aviation, Ltd., begins replacement service, and (b) selecting Great Lakes to provide those services at subsidy rates totaling $8,201,992 annually.

By: Andrew Steinberg

December 19, 2007

Re: Notice of Termination of Service

Big Sky will terminate all of its scheduled services at Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney, and Wolf Point, and is in discussions with another carrier to take over these services within about 60 days. Big Sky currently operates services between these seven Montana EAS communities and Billings, Montana using 19-seat Beech 1900D aircraft.

No other carrier currently provides service at Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney, and Wolf Point.

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

December 20, 2007

Re: Montana Essential Air Service Task Force Support for Great Lakes Aviation

The announcement yesterday by Big Sky Airlines is of concern to the Montana Essential Air Service Task Force and the continuation of essential air service at our communities. The task force supports awarding the contract for providing essential air service at Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney and Wolf Point to Great Lakes Aviation. The task force encourages the USDOT to work with Great Lakes Aviation to provide a seamless transition and non-interruption of service to our communities

By: John Rabenberg

January 9, 2008

Motion of Big Sky Transportation

Hereby moves the Department of Transportation on an emergency basis to accelerate the commencement of the annual subsidy of $8,473,617 provided under DOT Order 2007-11-21 to January 8, 2008, rather than wait for the March 1, 2008 effective date set forth in that Order and DOT Order 2007-12-22.

As the Department is well aware, Big Sky is "in severe financial distress, and on the brink of shutting down its operations altogether." As a consequence of its dire financial situation, Big Sky last month filed a notice of termination of its scheduled services with respect to the Montana communities of Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney, and Wolf Point, and the carrier is working to ensure a smooth seamless transition of those services to Great Lakes Aviation. Big Sky is in constant contact with Great Lakes Aviation, but has no assurance that Great Lakes will be able to assume the EAS operations to the Montana Communities in the near future. Moreover, earlier this week, Big Sky ceased its East Coast operations entirely.

Despite its efforts, Big Sky continues to hemorrhage money, and it has been unable to collect funds due from other parties. For example, TSA has failed to provide security screening services since 2002 for these Montana Communities, forcing Big Sky (at its own expense) to bus those passengers at Billings. Big Sky has billed TSA approximately $700,000 for those bus‑transportation services, but TSA has not paid that invoice even though TSA has received the security‑related fees associated with those passengers. This situation has only exacerbated Big Sky's severe financial distress. Simply put, Big Sky's situation is indeed dire.

To be clear, Big Sky's situation is so urgent that absent the relief requested herein, Big Sky will be compelled to shut down its service to these Montana Communities before the smooth seamless transition to Great Lakes Aviation can be completed.

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

Order 2008-1-6
OST-1997-2605

Issued January 11, 2008 | Served January 16, 2008

Order Granting Emergency Motion

In a motion filed January 9, Big Sky asks the Department to advance the effective date of the new subsidy rate scheduled for effect March 1. In support of its request. Big Sky again states that its financial condition is dire. Big Sky reports that it is working with Great Lakes to ensure a smooth, seamless transition of operations, but it has no assurance that Great Lakes will be able to assume those operations soon. Big Sky concludes that, without the new subsidy rate, it will be compelled to shut down its Montana services before a transition to Great Lakes can be completed.

We have decided to grant Big Sky's request. While 49 U.S.C. 41734 would not generally provide for a change in the rate of compensation until 180 days after the carrier has given its 90-day notice to leave, 49 U.S.C. 40109(c) grants us authority to exempt this. The essential air service program was created to ensure that eligible communities stay connected to the national air transportation system. In this case, the carrier has already shut down most of its operations and fully plans a complete liquidation. As a result, we have concluded that this case warrants the use of our exemption authority in this case to promote the chances of a smooth transition from Big Sky to Great Lakes at the seven communities without a service hiatus.

By: Michael Reynolds

April 28, 2008

Re: Ex-Parte Letter to Congressman Denny Rehberg

By: Michael Reynolds

Order 2008-7-9
OST-1997-2605

Issued July 3, 2008 | Served July 9, 2008

Order Approving an Alternate Service Pattern | Word

By Order 2007-12-22, December 21, 2008, the Department selected Great Lakes Aviation, Ltd., Inc., operating as operating as both a United Airlines and Frontier Airlines code-share partner, to provide subsidized essential air service between seven Montana communities, including Lewistown, Miles City and Sidney, and Billings, utilizing 19-seat Beech-1900D aircraft, for a two-year period at annual subsidy rate of $8,201,992 for all seven communities. Great Lakes’ original proposal offered the prospect of later changing the communities' hub from Billings to Denver if such a change could be agreed upon with the communities.

While the Department has encouraged Great Lakes to begin service as soon possible since issuing Order 2007-12-22, the carrier has faced hurdles in acquiring the necessary aircraft and hiring and training crews. Great Lakes has not yet commenced service at any of the seven Montana communities.

By: Todd Homan

July 2, 2008

Email Message - Great Lakes Clarifying Schedules

We will file the attached schedules above on these Montana cities with service starting September 3, 2008. Lewistown & Sidney, Montana - service into Denver via one-stops.

In light of today's soaring fuel cost and for further clarification, we expect payments on these routes to be paid at the full segment departure rates amount submitted in our bids for Montana as well as the recently new issued Order rates (i.e. Worland) effective immediately upon commencement of the above service.

By: Great Lakes, Chuck Howell

Order 98-9-12 OST-97-2605	Issued September 14, 1998 - Served September 18, 1998	Order Tentatively Reselecting Carrier and Establishing Subsidy Rate	Glasgow, Montana, Glendive, Montana, Havre, Montana, Lewistown, Montana, Miles City, Montana, Sidney, Montana, and Wolf Point, Montana.
		Appendix A
		Appendix B
		Appendix C
		Appendix D
		Appendix E - Service List

Order 00-11-11 OST-97-2605	Issued November 13, 2000 Served November 16, 2000	Order Tentatively Reselecting Carrier and Establishing Subsidy Rate	Glasgow, Montana, Glendive, Montana, Havre, Montana, Lewistown, Montana, Miles City, Montana, Sidney, Montana, and Wolf Point, Montana.
		Appendix A: Map
		Appendix B: Annual Compensations
		Appendix C: Historical Enplanements
		Appendix D: EAS
		Service List

Order 02-8-03 OST-97-2605	Issued August 7, 2002 Served August 12, 2002	Order Establishing Final Subsidy Rate	EAS at Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney and Wolf Point, Montana- Big Sky Airlines
		Appendices: Map, EAS to be Provided