Essential Air Service at Sheridan, Wyoming
February 17, 2004
90-Day Notice of Mesa Air Group for Suspension of Air Service
As the result of the loss of code sharing with United Air Lines, Mesa Air Group, Inc. is notifying the Department that it intends to suspend all air service at the following point in 90 days from the date of filing of this notice.
Counsel: V. Michael Straus, 202-785-2242
March 9, 1998
RE: Letter of Objection from Sheridan County Airport
The service being provided by Mesa Air Group, to Sheridan and the Sheridan area is vitally important to us and suspension of service must not be allowed to occur. If necessary and reasonable, we endorse the payment of compensation for continuation of our service. At the same time, we encourage the exploration of alternative carriers to provide this service if they are capable of providing the same level of service, specifically code‑sharing or interlining with the Senior Partner, United Airlines at Denver International should remain the designated hub for service from our community because greater connectivity to our nation's transportation system is essential for Sheridan and our local area.
By: Norman Feck
Order 1998-3-20 | OST-98-3517 | OST-98-3520 | OST-98-3522 | OST-98-3518 | OST-98-3519 | OST-98-3504 | OST-98-3500 | OST-98-3493 | OST-98-3506 | Issued March 19, 1998 | Served March 25, 1998
Order Prohibiting Suspension of Service and Relying on Subsidy-Free Service
After fully considering this matter, we have decided to require Mesa to maintain service at the communities until replacement service begins, at which time we will rely on SkyWest and Mountain Air Express to meet the communities' essential air service needs.
- Appendix A: Map
- Appendix B: Replacement Service at Communities for Which Mesa has Filed Suspension Notices
- Appendix C: EAS to be Maintained
By: Charles Hunnicutt
August 2, 2004
Notice of Great Lakes Aviation to Terminate Scheduled Air Service | Word
Great Lakes service at Sheridan currently consists of three daily non-stop round-trips, with additional weekend non-stop during seasonal peaks, to Denver International Airport, a major connecting hub for Frontier Airlines and United Airlines, in 19-seat Raytheon/Beech 1900D Airliner and 30-seat Embraer EMB-120 Brasilia equipment. Great Lakes Airlines provides the only scheduled passenger air service at Sheridan, Wyoming.
The Company has been responding to the community’s request for additional lift during the peak summer months. Over the past few years, Great Lakes has provided additional frequencies, and this year utilized the larger 30-seat equipment, during the market’s seasonal peak, especially over the weekend periods. Unfortunately the additional fuel costs this year have diminished the value of the summer peak, and the Company is facing additional losses as the traffic resumes its normal off-peak seasonal patterns. The effective date of this intended termination is October 31, 2004 (the last day of scheduled service would be October 31, 2004).
By: Charles Howell
Order 2004-8-29
OST-1998-3506 - EAS at Sheridan, WY
Issued August 25, 2004 | Served August 30, 2004
Order Prohibiting Termination of Service and Requesting Proposals | Word
By this order, the Department is (a) prohibiting Great Lakes Aviation, Ltd., from terminating its unsubsidized service at Sheridan, Wyoming; (b) requiring the carrier to maintain service between the community and Denver, Colorado, for an initial 30-day period following the end of the notice period; and (c) requesting proposals from carriers interested in providing essential air service at Sheridan, Wyoming, for a future two-year period, with or without subsidy.
By: Karan Bhatia
September 29, 2004
Response of Big Sky Transportation d/b/a Big Sky Airlines to Request for Proposals
Big Sky proposes to offer 21 weekly departures between Sheridan and Denver. The service pattern is well timed for connections at Denver and offers three daily flights.
Based on Big Sky’s costs and estimated passenger traffic and revenue, an Essential Air Service subsidy of $336,701 annually is required. Exhibit 2 presents details of the Sheridan to Denver service proposal and represents the economics for 18 weekly trips to Denver only. Big Sky will operate the Billings service and additional weekend flights without subsidy.
By: Big Sky, Craig Denney, 406-247-3912, craig.denney@bigskyair.com
September 29, 2004
As in the recent bids for service points in Wyoming and New Mexico, Great Lakes is bidding on this point to provide service in the local markets to Denver as Great Lakes Airlines. These service patterns and times are designed specifically to connect with our codeshare partners Frontier and United Airlines in Denver, with which we hold exclusive code-sharing agreements for the service at this point.
By: Great Lakes, Dave Thomas, 307-432-7000
September 29, 2004
Based on preliminary discussions with the community, we would initially propose a three-stage regional effort which would begin with larger (37 seat) aircraft and implement an aggressive fare structure to combat extensive local leakage (e.g. Billings). See Options 3 and 4 for illustrative pricing models. Should the Department of Transportation find the cost of the funding Options 3 and 4 prohibitive we would propose to explore partnering with the Wyoming Department of Transportation for additional funding in the amount of approximately $500,000 per year. The community has shown great support for the larger aircraft and we feel it represents the best hope for significant increases in passenger ridership.
- Phase 1 - Three roundtrip service pattern, integrated with Gillette;
- Phase 2 - increase frequency based on attainment of mutually agreed passenger and revenue commitments;
- Phase 3 - migrate to non-stop service pattern combined with "on demand" regional jet capacity offered at wholesale rates to the community (e.g. corporate functions, charter events); Mesa is the only EAS provider with ready access to a complete range of stateof-the-art regional jets (50,65, and 86 seat varieties and cabin configurations)
By: Mesa, Linda Larsen
October 13, 2004
Re: Request for Comments of James Wilson, Mayor of Sheridan
I would like to update you on the essential air service situation at Sheridan and to give you an opportunity to submit any comments if you wish. As you know, by Order 2004-8-29, August 25, 2004, the Department solicited proposals from all interested air carriers to provide service at Sheridan. In response to that order, we received seven proposal options from Big Sky Transportation Co. d/b/a Big Sky Airlines, 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. I would also urge you to review the original proposals.
By: Dennis DeVany
October 13, 2004
Re: Request for Comments of Shelly Reams, Administrator, Wyoming Department of Transportation
By: Dennis DeVany
October 13, 2004
Re: Request for Comments of John Stopka, Sheridan County Airport Manager
By: Dennis DeVany
October 29, 2004
The purpose of this letter is to formally request an additional two weeks Time to draft our community comments to the above referenced Order.
The Sheridan Air Service Task Force has taken this matter very seriously and has met with all three airlines once and with Great Lakes Aviation, Ltd., twice to discuss their proposals and answer questions. All of these meetings were public meetings and the response we have had from the public has been very good. The Task Force just met again this morning to review public comment and the proposals. The consensus from this meeting was that we still have some additional questions that need to be answered by both the Mesa Air Group, Inc., d/b/a Air Midwest and Great Lakes Aviation, Ltd., therefore we would appreciate some additional time to get our responses back from the airlines and put our comments in writing.
By: Sheridan County Airport Manager, John Stopka
Issued November 2, 2004 | Served November 5, 2004
By Order 2004-8-29, served August 30, 2004, the Department requested proposals from air carriers interested in providing essential air service at Sheridan, Wyoming. Three air carriers submitted a total of seven proposal options in response to this order. By letter dated October 13, 2004, we requested comments on the air carrier selection from the Mayor and Airport Manager of Sheridan and the Administrator, Aeronautics Division, Wyoming Department of Transportation. We requested that these comments be submitted by November 18, 2004.
We have received a request dated October 29, 2004, from the Airport Manager, Sheridan County Airport, requesting an extension until December 2, 2004, for submitting the civic parties' comments. In support of his request, the Airport Manager states that questions have arisen that have required additional time for the Civic Parties to consult with the air carrier applicants.
We will grant this request, and in so doing, will grant all of the civic parties until December 2, 2004, to submit their comments on the service proposals for Sheridan.
By: Dennis DeVany
November 23, 2004
Re: Kilpatrick Creations Letter in Support of Great Lakes Aviation
By: Joanne Kilpatrick
Order 2004-11-17
OST-98-3506 - EAS at Sheridan, WY
Order Extending Service Obligation | Word
By this order, the Department of Transportation extends the service obligation of Great Lakes Aviation, Ltd., at Sheridan, Wyoming, for an additional 30 days, through January 3, 2005.
By: Karan Bhatia
November 23, 2004
Re: Montana Aeronautics Board Letter in Support of Big Sky Airlines
By: John Rabenberg
November 29, 2004
Re: Billings Logan International Airport Letter in Support of Big Sky Airlines
By: J. Bruce Putnam
November 29, 2004
Re: Sheridan County Commission Letters in Support of Great Lakes
By: Ky Dixon, Jim Wilson, Robert Wood, Cliff Clevenger, Bruce Hepp, Jane Buell, Bill Bailey, Penny Becker, Dan Kuchinka, and John Stopka
December 16, 2004
Passenger growth has steadily recovered and grown in Sheridan since the devastating effects of the events of 9-11-01 - Changes to this market, at this time, will prove damaging to the over-all success of service in Sheridan. The EAS program should provide essential service, but not to do so at the detriment of the existing and growing market share. Sheridan's market could grow out of or greatly reduce the need for federal subsidy after the two-year subsidy contract. This improvement is very much jeopardized if service does not connect directly to the Denver Hub via the incumbent carrier, Great Lakes Airlines.
The service currently provided by Great Lakes Airlines incorporates the established carrier connections to United Airlines and Frontier Airlines in which the customer base has invested. The service also allows passengers direct‑hub access, which is proven to retain more ridership than two and three leg flights via non‑hub connections. The customer base has grown accustomed to the services and connections provided by Great Lakes Airlines and the airline has provided exemplary service in all areas including ontime departures, arrivals, and completion.
By: Shelly Reams
December 16, 2004
Re: Wyoming Aeronautics Commission Letter in Support of Great Lakes Aviation
By: Jerry Delano
December 17, 2004
Re: Dave Freudenthal, Governor of Wyoming, Letter in Support of Great Lakes Aviation
Great Lakes Airlines is Wyoming owned and headquartered. It is essential to the further health of air service in Wyoming to foster and develop local service which best fits our commercial passenger needs now and in the future. Great Lakes, through its connections with United and Frontier in Denver, has positioned itself as a reliable and established carrier throughout Wyoming. In the past two years it has exceeded industry standards in reliability to our Wyoming Essential Air Service (EAS) subsidy markets.
Placing a carrier that has no experience or extensive gate personnel into Denver would have detrimental impacts upon air service in Sheridan. Great Lakes has a large presence in the Denver Hub. In addition to long‑term relationships with established customer bases with United and Frontier, the extensive connections and customer service base held by Great Lakes in Denver provides the market in Sheridan with a reasonable success factor.
By: Dave Freudenthal
Order 2004-12-17
OST-1998-3506 - EAS at Sheridan, WY
Issued December 27, 2004 | Served December 30, 2004
Order Extending Service Obligation | Word
By this order, the Department of Transportation extends the service obligation of Great Lakes Aviation, Ltd., at Sheridan, Wyoming, for an additional 30 days, through February 2, 2005. Although we have received proposals, this case will not be completed by the end of the current hold-in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes’ service obligation at Sheridan for an additional 30 days, or until the carrier selection process is completed, whichever occurs first.
By: Karan Bhatia and Randall Bennett
Order 2005-1-7
OST-1998-3506 - EAS at Sheridan, WY
Issued January 10, 2005 | Served January 13, 2005
By this order, we are selecting Big Sky Transportation Co., d/b/a Big Sky Airlines, to provide essential air service with 19-passenger Fairchild Metro III/23 aircraft at Sheridan, Wyoming, for two years for an annual subsidy rate of $336,701. We are also directing Great Lakes Aviation, Ltd., to show cause why we should not set the subsidy rate of $806,914 on an annual basis, for its provision of service from November 1, 2004, until Big Sky Airlines inaugurates essential air service at Sheridan.
The community has expressed a preference for a service proposal that would offer more capacity with 30-seat aircraft at significantly greater cost than the 19-seat aircraft proposals we have before us. To evaluate the need for this level of capacity increase, we have updated the summary of revenue passenger traffic data originally presented in Appendix A of Order 2004-8-29. (The updated summary may be found in Appendix A of the instant order.) We note that Sheridan exhibits relatively strong traffic, approaching pre-September-11 levels. Nevertheless, we do not find evidence that passenger demand is exerting the level of pressure on capacity that would warrant an expensive capacity upgrade. For example, for the past three years, Sheridan has generated an average of 35, 34, and 36 passengers a day. Three round trips a day with a 19-seat aircraft provide 57 outbound seats a day, resulting in load factors in the 60-65 percent range. In addition, it is important to note that the Essential Air Service Program provides a safety net level of service, and not necessarily all of the service that communities might prefer.
By: Karan Bhatia
January 14, 2005
Re: Ex Parte Communication with Patrick Thompson
On December 20, 2004, I spoke by telephone with Mr. Patrick Thompson, who called on behalf of Representative Barbara Cubin. Mr. Thompson called to indicate Rep. Cubin's support for the service proposal recently submitted by Great Lakes Aviation, Ltd. to operate subsidized essential air service at Sheridan, Wyoming.
I noted to Mr. Thompson that the Department's rules prohibit me from discussing the merits of the proposal in question. In addition, I told him that I would place a memorandum covering the substance of our conversation in the case docket as a contact outside the record of the proceeding.
Prepared by: Karan Bhatia
January 20, 2005
Re: Sheridan County Commission Protest to the Selection of Big Sky Airlines
This proposal will most certainly lead to the further leakage of airline travelers to Billings, Montana. You have elected to provide our community with a smaller plane having less cargo capacity and sacrificed the comfort of our traveling public. To a great degree, our community is comprised of older travelers who will be reluctant to board these small planes. Your selection of Big Sky has also precluded those handicapped individuals the ability to fly from our Sheridan airport. In your decision order, you stated that "the community is clearly divided in the carrier selection decision", and further stated that in situations as this (where the community is divided), the relative subsidy amounts required become especially important.
We in the community had unanimity in our recommendation of Great Lakes Airlines. After thoroughly reviewing and understanding the consequences of the various proposals, Great Lakes had the full support of the following: 1. Our Community Air Service Task Force 2. The five Mayors of the affected communities 3. Sheridan County Commissioners 4. Governor of the State of Wyoming 5. Wyoming Transportation Commission 6. Wyoming Aeronautics Division
You have apparently disregarded all of the above, in supporting a decision favoring Big Sky by the City of Billings, Montana Aviation Department and the Montana Aeronautics Board. Do you see anything wrong with the above picture? Entities in Montana should not be dictating policy for Wyoming Communities!
By: Sheridan County, Lawrence Durante
January 26, 2005
Re: Comments of Big Sky Airlines
We believe that the Sheridan community will benefit greatly by having service to two hubs. There are many destinations where travel time is reduced by connecting in Billings. The proposed flight schedule will enable easy connections to the 1:00pm ‑2:00pm bank of departing Billings flights, which include non‑stop service to Portland, Phoenix, Salt Lake City, and Minneapolis.
By: Craig Denney, 406-247-3912, craig.denney@bigskyair.com
Order 2005-2-2
OST-1998-3506 - EAS at Sheridan, WY
Order Extending Service Obligation
By this order, the Department of Transportation extends the service obligation of Great Lakes Aviation, Ltd., at Sheridan, Wyoming, for an additional 30 days, through March 4, 2005.
By Order 2005-1-7. January 10, 2005, the Department selected Big Sky Transportation Co., d/b/a Big Sky Airlines, to provide essential air service at Sheridan for two years at an annual subsidy rate of $336,701, beginning when Big Sky actually begins service. On January 26, 2005, the Sheridan County Commission filed a Petition for Reconsideration asking that Department change the carrier selection decision.
By: Randall Bennett
January 30, 2005
Re: Comments of Rosie Berger, Wyoming House of Representatives
By: Rosie Berger
Order 2005-2-9
OST-1998-3506 - EAS at Sheridan, WY
Issued and Served February 15, 2005
By this order, we are accepting the petition of the Sheridan County Commission for reconsideration of Order 2005-1-7, January 10, 2005, and, upon reconsideration of the issues raised by Sheridan, we are affirming our selection of Big Sky Transportation Co., d/b/a Big Sky Airlines, to provide essential air service with 19-passenger Fairchild Metro III/23 aircraft at Sheridan, Wyoming, for two years for an annual subsidy rate of $336,701.
By: Karan Bhatia
Order 2005-2-16
OST-1998-3506 - EAS at Sheridan, WY
Issued February 24, 2005 | Served March 1, 2005
Order Extending Service Obligation
By this order, the Department of Transportation extends the service obligation of Great Lakes Aviation, Ltd., at Sheridan, Wyoming, for an additional 30 days, through April 4, 2005.
By: Randall Bennett
June 8, 2005
Re: Letter from Norman Mineta to Senator Craig Thomas
While I understand the community's disappointment in not receiving the service proposal that it preferred, the U.S. Department of Transportation's decision in the case was fully consistent with the statute and the Department's policy in essential air service cases. As you note, when selecting carriers to provide subsidized essential air service, the Department considers a number of factors including the historical service reliability of the applicants, their contractual and marketing relationships, their interline arrangements with other carriers, the community views, and the subsidy cost of the service to be provided. In the Sheridan case, both carriers have good track records of providing reliable service, and both have extensive interline agreements and code‑share relationships with major carriers to allow for seamless service beyond the hub. Thus, the selection decision weighed Great Lakes Aviation's strong community support against subsidy levels nearly two and one‑half to three times Big Sky Airlines' (depending on which of Great Lakes Aviation's service/subsidy options we examined).
As discussed in detail in the Department's initial selection decision, as well as in the order on reconsideration, the community's preferred option (Great Lakes Aviation's proposal to use 30‑passenger aircraft) would have cost $1,000,461 annually, nearly three times as much as the Big Sky Airlines 19‑passenger aircraft proposal selected by the Department at $336,701 annually. Considering the budgetary constraints on the Essential Air Service Program, the difference in subsidy cost necessarily had to be a major consideration. The Department concluded that Big Sky Airlines' proposal best met the statutory and policy objectives for selection.
By: Norman Mineta
Order 2006-10-11
OST-1998-3506
Issued October 20, 2006 | Served October 25, 2006
By this order, the Department is requesting proposals from carriers interested in providing essential air service at Sheridan, Wyoming, for a new two-year period, beginning February 1, 2007, with or without subsidy.
With specific respect to Sheridan, we expect proposals consisting of three round trips each weekday and each weekend utilizing 19-seat aircraft with service to Denver. Such service is consistent with what the community currently receives, and fully satisfies its 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: Todd Homan
Order 2006-10-19
OST-1998-3506
Issued and Served October 31, 2006
Order Discounting the Request for Proposals
By this order, the Department is vacating Order 2006-10-11, which requested proposals from carriers interested in providing essential air service at Sheridan, Wyoming, for a new two-year period, beginning February 1, 2007, with or without subsidy. Beginning February 1, 2007, the Department will rely on Big Sky Transportation Co., d/b/a Big Sky Airlines to provide subsidy-free EAS at Sheridan.
By: Todd Homan
October 30, 2006
Response of Big Sky Airlines to Order 2006-10-11
Big Sky Airlines is pleased to inform the Department of Transportation that based on its successful service it will eliminate the subsidy requirement at Sheridan, effective February 1, 2007. In addition, Big Sky will continue service between Billings and Sheridan as well as providing increased capacity during the peak summer travel season.
Counsel: Big Sky, Fred deLeeuw, 406-247-3912, fred.deleeuw@bigskyair.com
December 19, 2007
Re: Notice of Termination of Service
Big Sky currently operates three daily flights between Sheridan and Denver, Colorado, and one daily flight between Sheridan and Billings, Montana, using 19-seat Beech 1900D aircraft . After Big Sky terminates service, Sheridan will continue to receive service to and from Denver, operated by Great Lakes Aviation.
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
Order 2007-12-27
OST-1998-3506 - Sheridan
OST-2007-0122 - Trenton
Issued December 27, 2007 | Served January 3, 2008
Order Allowing Suspension of Service
At Sheridan, Big Sky currently operates 21 nonstop round trips a week to Denver and 7 to Billings with 19‑seat Beech 1900 aircraft. At Trenton, Big Sky operates 18 nonstop round trips a week to Boston with Beech 1900s. Both Sheridan and Trenton receive scheduled air service from other carriers: Sheridan is also served by Great Lakes Aviation, Ltd., which operates 21 nonstop round trips a week to Denver with 30‑seat Embraer Brasilia aircraft; and Trenton is also served by Boston‑Maine Airways, d/b/a Pan Am Clipper Connection, which operates 18 nonstop round trips a week to Bedford, Massachusetts, with on‑line connecting service to Boston, with 19‑seat Jetstream 31 aircraft.
In view of Big Sky's dire condition and the availability of other service, there is little if anything to be gained by requiring Big Sky to maintain service at Sheridan or Trenton beyond that date, which will accommodate holiday travelers.
At Sheridan, the remaining service operated by Great Lakes easily meets the community's essential air service determination, which calls for two nonstop or one‑stop round trips to Denver each weekday and weekend offering a total of 67 seats in each direction.1 Great Lakes' three daily round trips with 30‑seat aircraft provide Sheridan with 90 seats in each direction on weekdays and 180 on weekends.
At Trenton, Big Sky was required to file a notice because the community technically remains an essential air service community. However, we are statutorily prohibited from paying subsidy to support essential air service at communities that do not meet certain eligibility criteria, including those located within 70 highway miles of a large or medium hub. Trenton is 45 highway miles from Philadelphia International Airport, a large hub. Because service at Trenton is not eligible for subsidy, we could not require Big Sky to continue service beyond 90 days in any case.
By: Michael Reynolds
January 4, 2008
Re: Comments of Sheridan County Commission
We are extremely disappointed in the Departments decision to grant Big Sky Transportation Co., d/b/a Big Sky Airlines an exemption from the 90‑day notice periods required by 49 U.S.C. 41734(a) to the extent necessary to allow the carrier to suspend its scheduled air services at Sheridan, Wyoming without receiving comment from the community. Even though the decision has been made allowing Big Sky Airlines to suspend its service as of January 7, 2008, we feel the need to clarify various inaccurate statements contained in the Order.
The Order states that Great Lakes Aviation Ltd., is serving Sheridan with 21 nonstop round trips a week to Denver with 30-seat Embraer Brasilia aircraft, this is not the case. Great Lakes Aviation Ltd., is serving Sheridan but they are not utilizing the 30-seat Brasilia aircraft exclusively. In June of 07' Great Lakes committed to operate two of their three daily weekday flights utilizing Brasilia aircraft which would afford Sheridan 79 seats each direction on weekdays and on weekends they would operate all their flights with the Brasilia providing Sheridan with 180 seats. Since June of 07' Great Lakes has not provided service with the Brasilia aircraft as promised. On an average Great Lakes provides only 55% of the committed Brasilia flights monthly.
Sheridan County, the City of Sheridan, and the surrounding area are experiencing an extraordinary boost in economic development and growth in population. As a result our enplanements for calendar year 2007 have increased 60.5% over calendar year 2006, the largest increase of any commercial airport in the State of Wyoming. Average daily enplanements for the last seven months have fluctuated from a low of 60 to a high of 88 with frequent days exceeding 100 enplanements.
By: County of Sheridan. Robert Rolston