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OST-1999-5712

Great Lakes Aviation, Ltd.

In the four and one half years since Great Lakes inaugurated United Express service between Oshkosh and O'Hare, a number of carriers have significantly improved scheduled service at the Appleton, Wisconsin airport located 19 air miles from the Oshkosh airport. Competing air service at Appleton for June, 1999 will consist of 30 departures by four air carriers to six hubs verses 26 flights to four hubs four years ago. Fifty three percent of the departures are now operated in jet equipment compared to 23 percent in January, 1995 while available seats from the Appleton airport have increased 33 percent in the same period

By:  Douglas Voss, President and CEO

Great Lakes is the sole air carrier providing scheduled air service at Oshkosh. The citizens of Winnebago County, Wisconsin will suffer irreparable financial and economic harm if air service is interrupted or not maintained at the m1r.imum EAS level between Oshkosh and O'Hare. Great Lakes attempts explain its notice to terminate air service with claims that it cannot compete with service available at the Appleton, Wisconsin airport. Great Lakes' claim is not supported by the facts. Oshkosh has an excellent service area population of approximately 342,000 persons. Passenger enplanements in recent years were much higher than they are today. The apparent causes of the decline in passengers and profitability include Great Lakes' service problems, lack. of marketing, lack of available seats and an unwillingness to compete vigorously against the United commuter carrier that serves Appleton. Great Lakes has not actively marketed the service. Rather, it has downgraded the service. The Airport Department has received reports of United reservation agents discouraging customers from using Wittman Regional Airport and encouraging them to use Appleton airport based on the available equipment.

Counsel:  Baker & Hostetler, LLP, David Kirstein for Wittman Regional Airport, 202.861.1756

By:  John Coleman

By:  Bradley Mims

99-10-11 Order extending Great Lakes' service obligation at Oshkosh, Wisconsin, for another 30 days through November 17, 1999. Petitions are due October 25, 1999.

By:  John Coleman

On May 20, 1999, Great Lakes Aviation, Ltd., d/b/a United Express (Great Lakes), filed a 90-day notice of its intention to suspend its subsidy-free service at Oshkosh, Wisconsin, effective August 18, 1999. By Order 99-8-11, August 13, 1999, the Department prohibited Great Lakes from suspending service beyond the end of its 90-day notice period, through September 16, 1999, and requested proposals, with subsidy if necessary, to provide replacement service at Oshkosh. Great Lakes provides two nonstop round trips a day in the Oshkosh-Chicago O'Hare market with 19-seat aircraft. We have subsequently extended Great Lakes' service obligation at Oshkosh for additional 30-day periods, the most recent by Order 99-10-11, through November 17, 1999. By Order 99-10-6, the Department established an annual subsidy rate of $460,392 for Great Lakes' hold-in service, effective August 18, 1999, until the Department takes further action. In the meantime, the community is exploring other service options for Oshkosh.

Since we have not yet received any proposals, this case will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes' service obligation at Oshkosh for an additional 30 days, through December 17, 1999, or until replacement service actually begins, whichever comes first.

By:  John Coleman

By:  Dennis J. De Vany

Application of Air Wisconsin Airlines Corporation, applies for an exemption to provide a daily roundtrip flight between Appleton, Wisconsin and Chicago O'Hare International Airport, serving Oshkosh as a hyphenated point with Appleton and an additional daily nonstop roundtrip flight between Central Wisconsin Airport and Chicago O'Hare.

Counsel: Air Wisconsin, Geoffery Crowley, 920.739.5123

By:  Bradley Mims

If Air Wisconsin truly wants to benefit the Oshkosh community, it would be welcome to replace Great Lakes Aviation on the Oshkosh-O'Hare routing at Wittman. Should it wish to combine Oshkosh service with the Central Wisconsin Airport, it would be welcome to add seats and frequency to that market by offering two or more one-stop flights to O'Hare via Oshkosh. If the Department determines CWA requires additional O'Hare slots it should grant that airport's request for additional community exemption slots rather than misappropriate any of Oshkosh's EAS slots for that purpose.  In sum, granting Air Wisconsin's request would not further the goals of the EAS program or the public interest. To the contrary, it would conflict with the Department's orders requiring continuation of EAS service at Oshkosh with the O'Hare slots Air Wisconsin seeks for other uses. Moreover, granting Air Wisconsin's request would in all likelihood eliminate scheduled air service at Oshkosh, which the EAS is intended to preserve, and prevent Oshkosh from attracting a replacement for Great Lakes.

Counsel:  Baker Hostetler, David Kirstein, 202.851.1756

There is no justification for reallocating Great Lakes' EAS slots to communities other than Oshkosh or redesignating Appleton and Oshkosh as hyphenated EAS
points over the objection of the Oshkosh community. Air Wisconsin's offer to accept transfer of the slots subject to recall on 60 days' notice if the Department
determines an authorized carrier is willing and able to provide unsubsidized EAS service to Oshkosh must be rejected. This proposal ignores the fact that reallocation
of these slots would end all scheduled air service at Oshkosh. Such a result would, in turn, immediately jeopardize the community's ability to attract a new carrier.
Continuity of service and the O'Hare slots are critically important assets in Oshkosh's efforts to replace Great Lakes. Suspending service to Wittman Regional
Airport while the Airport is actively working with potential replacement carriers, could create an insurmountable barrier to attracting new service. In addition, as
detailed in Wittman Regional Airport's answer to Air Wisconsin's application, reallocating these exemption slots is contrary to the Department's previous orders
regarding the continuing need for EAS operations between O'Hare and Oshkosh, the goals of the EAS program, the interests of the Oshkosh community and the
public interest.

Moreover, Air Wisconsin's reply has presented no basis to overcome Oshkosh's objection to Air Wisconsin's proposal to hyphenate Oshkosh with Appleton. The
proposal is simply a device for Air Wisconsin to take EAS slots designated for Oshkosh to operate an additional, daily roundtrip between O'Hare and Outagamie
County Regional Airport in Air Wisconsin's headquarters city of Appleton. Oshkosh was not designated to share an airport with Appleton under the EAS program,
but is a separate air service market with its own airport and an independent right to essential air service that it has not consented to waive. Accordingly, Air
Wisconsin's request should be rejected as inconsistent with prior EAS decisions.

Counsel:  Baker Hostetler, David Kirstein, 202-851-1756

Order 2000-2-15 is extending Great Lake's service obligation at Oshkosh, Wisconsin, for another 30 days, through March 17, 2000. 

By:  Bradley Mims

Order 2000-3-10 is extending Great Lakes' service obligation at Oshkosh, Wisconsin, for another 30 days, through April 17, 2000. Petitions due March 27, 2000. 

By:  Randall Bennett

Order 2000-4-3 is extending Great Lakes' service obligation at Oshkosh, Wisconsin, for another 30 days, through May 17, 2000. Petitions are due April 20, 2000. 

By:  Randall Bennett

By this order, the Department of Transportation is extending Great Lakes' service obligation at Oshkosh, Wisconsin, for another 30 days, through June 16, 2000.  Since we have not yet received any proposals, this case will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes' service obligation at Oshkosh for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By:  Randall Bennett

By:  Randall Bennett

By:  Randall Bennett

By:  Bradley Mims

By:  Randall Bennett

By:  Randall Bennett

By:  Randall Bennett

By:  Randall Bennett

By:  Randall Bennett

By:  Randall Bennett

By:  Randall Bennett

By:  Randall Bennett

By:  Randall Bennett

On May 20, 1999, Great Lakes Aviation, Ltd., d/b/a United Express (Great Lakes), filed a 90-day notice of its intent to suspend its subsidy-free service at Oshkosh, Wisconsin, effective August 18, 1999. By Order 99-8-11, August 13, 1999, the Department prohibited Great Lakes from suspending service beyond the end of its 90-day notice period, through September 16, 1999, and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended Great Lakes' service obligation for additional 30-day periods, the latest through July 18, 2001, by Order 2001-6-14.

By Order 99-10-6, the Department established an annual subsidy rate of $460,392 for Great Lakes' hold-in service, until the Department takes further action. In the meantime, the community is exploring other service options for Oshkosh.

Since we have not yet received any proposals, this case will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes' service obligation at Oshkosh for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By:  Randall Bennett

On May 20, 1999, Great Lakes Aviation, Ltd., d/b/a United Express (Great Lakes), filed a 90-day notice of its intent to suspend its subsidy-free service at Oshkosh, Wisconsin, effective August 18, 1999. By Order 99-8-11, August 13, 1999, the Department prohibited Great Lakes from suspending service beyond the end of its 90-day notice period, through September 16, 1999, and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended Great Lakes' service obligation for additional 30-day periods, the latest through August 17, 2001, by Order 2001-7-6.

By Order 99-10-6, the Department established an annual subsidy rate of $460,392 for Great Lakes' hold-in service, until the Department takes further action. In the meantime, the community is exploring other service options for Oshkosh.

Since we have not yet received any proposals, this case will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes' service obligation at Oshkosh for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By:  Susan McDermott

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

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

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

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

By:  Susan McDermott

By:  Randall Bennett

By:  Randall Bennett

Order 2001-11-5 is extending Great Lakes' service obligation at Oshkosh, Wisconsin, for another 30 days, through December 17, 2001.  

By:  Randall Bennett

By:  Randall Bennett

By Order 99-10-6, the Department established an annual subsidy rate of $460,392 for Great Lakes' hold-in service, until the Department takes further action. In the meantime, the community is exploring other service options for Oshkosh. Since we have not yet received any proposals, this case will not be completed before the  end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes' service obligation at Oshkosh for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By:  Randall Bennett

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

By:  Read Van de Water

Since we have not yet received any proposals, this case will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes' service obligation at Oshkosh for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By:  Randall Bennett

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

By:  Dennis DeVany

By:  Mesa Air Group, Gus Carbonell

By:  Great Lakes, Doug Voss

On May 20, 1999, Great Lakes Aviation, Ltd., d/b/a United Express (Great Lakes), filed a 90-day notice of its intent to suspend its subsidy-free service at Oshkosh, Wisconsin, effective August 18, 1999. By Order 99-8-11, August 13, 1999, the Department prohibited Great Lakes from suspending service beyond the end of its 90-day notice period, through September 16, 1999, and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended Great Lakes' service obligation for additional 30-day periods, the latest through April 17, 2002, by Order 2002-3-13. By Order 99-10-6, October 6, 1999, the Department established an annual subsidy rate of $460,392 for Great Lakes' hold-in service, until the Department takes further action. In the meantime, the community is exploring other service options for Oshkosh. Although we have received service proposals from both Great Lakes and Mesa Airlines, this case will not be completed before the end of the current 30-day hold-in period.

By:  Randall Bennett

By Order 99-10-6, October 6, 1999, the Department established an annual subsidy rate of $460,392 for Great Lakes' hold-in service, until the Department takes further action. In the meantime, the community is exploring other service options for Oshkosh.

By:  Randall Bennett

By:  Randall Bennett

By:  Randall Bennett

Although we have received service proposals from both Great Lakes and Mesa Airlines, this case will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes' service obligation at Oshkosh for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By:  Read Van de Water

By:  Dennis DeVany

By:  Dennis DeVany

By:  Dennis DeVany

By:  Dennis DeVany

By:  Wittman Regional Airport, Duncan Henderson

Order 2002-9-9, the Department is extending Great Lakes' service obligation at Oshkosh, Wisconsin, for another 30 days, through October 16, 2002.  Although we have received service proposals from both Great Lakes and Mesa Airlines, this case will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes’ service obligation at Oshkosh for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett

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

By:  David Greene

Order 2002-10-14, the Department extends Great Lakes' service obligation at Oshkosh, Wisconsin, for another 30 days, through November 15, 2002.  Although we have received service proposals from both Great Lakes and Mesa Airlines, this case wall not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes' service obligation at Oshkosh for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett

By: William Gehman

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

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

By: Read Van de Water

By Order 99-10-6, October 6, 1999, the Department established an annual subsidy rate of $460,392 for Great Lakes' hold-in service, until the Department takes further action. In the meantime, the community is exploring other service options for Oshkosh. In addition, we recently issued Order 2002-10-26, again requesting proposals for Oshkosh service. Since this case will not be completed before the end of the current 30-day hold-in period, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes' service obligation at Oshkosh for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett

Index

By: Great Lakes Airlines

By Order 99-10-6, October 6, 1999, the Department established an annual subsidy rate of $460,392 for Great Lake' hold-in service. until the Department takes further action. In the meantime, the community is exploring other service options for Oshkosh. In addition, we recently issued Order 2002-10-26, again requesting proposals for Oshkosh service. 

Order 2002-12-6, the Department extends Great Lakes' service obligation at Oshkosh, Wisconsin, for another 30 days, through January 15, 2003.

By: Randall Bennett

Response of Mesa Air Group on behalf of its wholly-owned subsidiary Air Midwest, Inc. to request for proposals 2002-10-26 for competitive proposals between Oshkosh, Wisconsin and Chicago O'Hare International Airport.

By: Scott Lyon

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

By: Read Van de Water

Since this case will not be completed before the end of the current 30-day hold-in period, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes’ service obligation at Oshkosh for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett

It is the Department's longstanding program policy to base subsidy-per-­passenger calculations on actual traffic, not carrier forecasts. To rely on carriers' passenger forecasts to determine communities' eligibility would be to abrogate our statutory obligations and turn over to the carriers the authority to determine which communities would remain in the program and which would be eliminated.

Air Midwest has prepared a final compensation request for service between Oshkosh and Chicago O'Hare in response to the Department's Order. to Community officials at Oshkosh, however, have indicated that service to Chicago Midway may better serve their interests. I 1 In light of this, Air Midwest is prepared to explore in good faith service options to the Midway hub. Air Midwest will also guarantee that its compensation requirement for Midway will be commensurate with the O'Hare final compensation requirement. As it is the Community's desire to transfer its service to Midway, Air Midwest requests that the Department consider service proposals to Midway as a viable alternative to service to O'Hare.

By: Mesa, Colleen O'Day

The Oshkosh community strongly supports service by Air Midwest to Midway and based on meetings with the carrier and its parent the Mesa Air Group, Inc., believes that Air Midwest has the desire and capability to make Oshkosh service a success. In support of Air Midwest, Wittman has agreed to provide necessary hangar space without charge to the carrier. In addition, Wittman is waiving both landing fees and fees for counter and office space. Moreover, to support the new service Wittman has pledged up to $100,000 in advertising support.

Counsel: Baker Hostetler, David Kirstein, 202 861-1756

By Order 99-10-6, October 6, 1999, the Department established an annual subsidy rate of $460,392 for Great Lakes’ hold-in service, until the Department takes further action.  In the meantime, the community is exploring other service options for Oshkosh.  We recently issued Order 2002-10-26, again requesting proposals for Oshkosh service.  In addition, the Department issued Order 2002-12-24, tentatively terminating the community’s subsidy eligibility because the subsidy per passenger exceeds the statutory ceiling of $200 per passenger and the community is less than 210 miles from the medium hum airport at Milwaukee.  The Department is reviewing objections from the community and an air carrier and will issue a final order soon.

By:  Read C. Van de Water

After carefully considering the objections we have received from and on behalf of the Oshkosh community, we have decided to affirm our tentative decision to terminate Oshkosh’s subsidy eligibility, as both Great Lakes and Mesa’s proposals would require subsidy well above the $200 per passenger cap.

By:  Read C. Van de Water

Section 332 of Public Law 106-69 prohibits the Department from subsidizing air service if the subsidy per passenger exceeds $200 and the community is within 210 highway miles of a large or medium hub airport. In the case of Oshkosh, the Department tentatively determined that the subsidy, based on the carrier proposals filed, exceeded the statutory ceiling of $200 per passenger, and that Oshkosh is 93 miles from Milwaukee, a medium hub airport, well within the 210-mile statutory exclusion. The Department has provided all interested parties, including the community and airport authority, an opportunity to comment on this tentative decision. On January 27, we received an objection to the tentative decision from the Winnebago County Airport Department on behalf of the Wittman Regional Airport, as well as from the Mesa Air Group, to the Department's tentative decision to terminate the EAS eligibility of Oshkosh.

By: Randall Bennett

Ex Parte Letter from Norman Y. Mineta, Secretary of Transportation, to the Honorable Russell D. Feingold, United States Senate, thanking him for his letter of January 16, enclosing correspondence from Mr. Duncan Henderson, Airport Director of the Wittman Regional Airport, regarding the U.S. Department of Transportation's recent order tentatively proposing to discontinue the subsidy eligibility of Oshkosh, Wisconsin, under the Essential Air Service (EAS) program.

By: Norman Mineta

Order 05-02-03
OST-99-5175 - EAS at Iron Mountain/Kingsford, MI
OST-99-5712 - EAS at Ironwood, MI/Ashland, WI
OST-96-1711 - EAS at Manistee/Ludington, MI

Issued February, 3, 2005 | Served February 8, 2005

Order Requesting Proposals | Word

By this order, the Department is requesting proposals from air carriers interested in providing essential air service at Iron Mountain/Kingsford, Michigan, Ironwood, Michigan/Ashland, Wisconsin, and Manistee/Ludington, Michigan, for a new two-year period, with or without subsidy.

During the year ended September 30, 2004, the most recent 12‑month period for which traffic data are available for the communities, Ironwood/Ashland averaged 9.4 enplanements a day, Iron MountainlKingsford averaged 24.8 enplanements a day, and Manistee/Ludington averaged 7.3 enplanements a day. During 2000, the last calendar year not affected by the terrorist attacks, Ironwood/Ashland averaged 6.4 enplanements a day, Iron MountainlKingsford averaged 28.6 enplanements a day, and Manistee/Ludington averaged 4.0 enplanements per day.

By: Karan Bhatia

OST-99-5175 - EAS at Iron Mountain/Kingsford, MI
OST-99-5712 - EAS at Ironwood, MI/Ashland, WI
OST-96-1711 - EAS at Manistee/Ludington, MI

March 10, 2005

Proposal of Air Midwest - Mesa Airlines

By: Mesa, Mickey Bowman, mickey.bowman@mesa-air.com

March 10, 2005

Proposal of Skyway Airlines - Midwest Connect

By: Midwest, James Rankin, james.rankin@midwestairlines.com

Order 2005-3-37
OST-99-5175 - EAS at Iron Mountain/Kingsford, MI
OST-99-5712 - EAS at Ironwood, MI/Ashland, WI
OST-96-1711 - EAS at Manistee/Ludington, MI

Issued March 25, 2005 | Served March 30, 2005

Order Setting Final Rate | Word

By this order, we are setting final prospective subsidy rates for the provision of essential air service by Astral Aviation, Inc., d/b/a Skyway Airlines, of $602,761 on an annual basis at Iron Mountain/Kingsford, Michigan, $409,242 for Ironwood, Michigan/Ashland, Wisconsin, and $776,051 for Manistee/Ludington, Michigan, effective February 1, 2005, until further Department action.

By: Karan Bhatia

OST-1996-1711 - EAS at Manistee/Ludington, MI
OST-1999-5175 - EAS at Iron Mountain/Kingsford, MI
OST-1999-5712 - EAS at Ironwood, MI/Ashland, WI

April 8, 2005

Re: Requests for Comments - Richard Mack, Mayor of Manistee, John Henderson, Mayor of Ludington, William J. House, Airport Manager, Mayor of Iron Mountain, Michigan, Mayor of Kingsford, Michigan, William H. Marchetti of Dickerson County Board of Commissioners, William E. Gehman, Director of Michigan Bureau of Aeronautics, Mayor of Ironwood, Michigan, Mayor of Ashland, Michigan, Airport Manager of Ironwood/Ashland, Michigan, David Greene, Director of Wisconsin Department of Transportation

I would like to update you on the essential air service situation at Manistee/Ludington, Iron MountainlKingsford, and Ironwood/Ashland and to give you an opportunity to submit any comments if you wish. As you know, by Order 2005‑2‑3, February 3, 2005, the Department provided for all interested air carriers to submit proposals to provide essential air service at Ironwood/Ashland, Iron Mountain/Kingsford, and ManisteefLudington. In response to that order, we received seven proposal options from Mesa Air Group, Inc., dlb/a Air Midwest, and three proposal options from Skyway Airlines, Inc., d/b/a Midwest Connect. 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 fill proposals as submitted by the carriers.

By: Office of Aviation Analysis, Dennis DeVany

OST-1999-5175 - EAS at Mountain/Kingsford
OST-1999-5712 - EAS at Oshkosh
OST-1996-1711 - EAS at Manistee

May 9, 2005

Comments of Michigan Department of Transportation

We have been extremely pleased by the highly‑reliable service provided by Midwest Connect at all the Michigan communities they serve. In particular, our EAS communities have benefited from this excellent service as their limited schedules make them highly sensitive to delays and cancellations.

Based on our analysis, we believe advantages exist both in cost‑savings and hub‑connectivity with the proposals submitted by Skyway Airlines Inc., dlb/a Midwest Connect Furthermore, the contingency required by the proposal of Mesa Air Group, Inc., dlb/a Air Midwest to also receive award of EAS subsidy at six (6) additional locations, imposes undue risk on the future of air service at the Michigan communities of Iron. Mountain, Ironwood, and Manistee.

By: Michigan Department of Transportation, Gerald Edwards

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

May 11, 2005

Re: Documents Entered in Incorrect Document

By: Luther Dietrich

May 9, 2005

Comments of Gary Sherman

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

Order 2005-5-14
OST-99-5175 - EAS at Iron Mountain/Kingsford, MI
OST-99-5712 - EAS at Ironwood, MI/Ashland, WI
OST-96-1711 - EAS at Manistee/Ludington, MI

Issued May 23, 2005 | Served May 26, 2005

Order Selecting Carrier and Setting Final Subsidy Rate

Given the strong community support and the great subsidy difference, we will select Skyway Airlines, to provide essential air service at Iron Mountain/Kingsford for a subsidy rate of $602,761 annually, at Ironwood/Ashland for $409,242 annually, and at Manistee/Ludington for $776,051 annually. Though not a statutory selection criterion, we note also that Skyway Airlines had done a good job of building passenger levels at all three communities. In particular, as we noted in Order 2005-2-3, traffic at Ironwood/Ashland and Manistee/Ludington has grown to levels well above those experienced in 2000, the last calendar year not affected by the terrorist attacks of September 11.

By: Karan Bhatia

Order 2007-1-2
OST-1999-5175 - EAS at Iron Mountain/Kingsford, MI
OST-1999-5712 - EAS at Ironwood, MI/Ashland, WI
OST-1996-1711 - EAS at Manistee/Ludington, MI
OST-2003-15128 - EAS at Escanaba, MI

Issued January 5, 2007 | Served January 10, 2007

Order Requesting Proposals

By this order, the Department is requesting proposals from air carriers interested in providing essential air service at: Iron Mountain/Kingsford, Michigan; Ironwood, Michigan/Ashland, Wisconsin; Manistee/Ludington, Michigan; and Escanaba, Michigan, for a new two-year period, beginning June 1, 2007, with or without subsidy.

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

By: Todd Homan

Order 2007-2-8
OST-1999-5175 - EAS at Iron Mountain/Kingsford, MI
OST-1999-5712 - EAS at Ironwood, MI/Ashland, WI
OST-1996-1711 - EAS at Manistee/Ludington, MI
OST-2003-15128 - EAS at Escanaba, MI

Issued February 6, 2007 | Served February 9, 2007

Erratum

By Order 2007-1-2, January 5, 2007, the Department requested proposals from air carriers interested in providing essential air service at: Iron Mountain/Kingsford, Michigan; Ironwood, Michigan/Ashland, Wisconsin; Manistee/Ludington, Michigan; and Escanaba, Michigan, for a new two-year period, beginning June 1, 2007, with or without subsidy. Upon review and consultation with the Gogebic-Iron County Airport Manager and Skyway Airlines, Inc., d/b/a Midwest Connect, the incumbent EAS air carrier, it was discovered that the enplanement data detailed in Appendix B of Order 2007-1-2, was incorrect. The corrected data for Calendar Years 2005 and 2006 are detailed in Appendix B.

Carriers should file their proposals no later that February 9, 2007. Consistent with EAS Program practice, we will give full consideration to all proposals filed in a timely manner.

By: Todd Homan

OST-1999-5175 - EAS at Iron Mountain/Kingsford, MI
OST-1999-5712 - EAS at Ironwood, MI/Ashland, WI
OST-1996-1711 - EAS at Manistee/Ludington, MI
OST-2003-15128 - EAS at Escanaba, MI

February 8, 2007

Proposal of Great Lakes Aviation

Proposal Part	Service Point(s)	Hub(s) Served	Round Trips	Equipment	Subsidy Requirement	Passengers Forecast	Average Fare
1	Iron Mountain	Milwaukee	3	1900D	$797,885	17,400	$87.00
2	Escanaba	Milwaukee	3	1900D	$617,415	19,750	$67.00
3	Ironwood	Milwaukee	2	1900D	$799,779	6250	$92.00
4	Manistee	Milwaukee	2	1900D	$957,978	3850	$79.00

Great Lakes will provide service at these Essential Air Service points in a similar fashion as is offered in Denver and utilize our interline agreements with all the major carriers, which will enable connecting bag service through the Milwaukee hub. In addition, we are anticipating executing a code-sharing agreement with Midwest Airlines to allow passengers a seamless connection at Midwest Airlines Milwaukee hub.

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

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

February 2, 2007

Proposal of Mesaba Airlines

In response to the Department’s Order 2007-1-2, Mesaba Aviation, Inc., doing business as Northwest Airlink, is enclosing a detailed subsidy proposal for essential air service at Escanaba, MI at a level of thirteen roundtrip, non-stop flights per week using 34-seat Saab 340 aircraft from Northwest’s DTW hub.

Depart DTW	Arrive ESC	Depart ESC	Arrive DTW
1210	1330	0814	0935
2250	0010	1459	1620

By: Mesaba, John Spanjers

February 9, 2007

Skyway Airlines Will Not Submit Proposals

Skyway will not be in a position to continue to provide these services in the future and, therefore, Skyway respectfully advises the Department that it will not be submitting a proposal to continue to serve the cities in response to Order 2007-1-2. However, as explained below and in the enclosed updated subsidy proposal, Skyway, if necessary, is willing to be held in at the proposed rates for a reasonable period of time until the DOT selects a replacement carrier or carriers.

The principal motivation for the Skyway decision not to submit a proposal in response to the DOT's Order is the fact that the carrier took the decision several years ago to begin disposing of its fleet of Beech 1900 aircraft. Since 2004, 7 of the fleet of 14 aircraft have already been disposed of and the carrier's plan is to retire the remainder of the aircraft type from its fleet during 2007. This aspect of the carrier's fleet simplification plan will be completed prior to the end of the next two year SAG term and, therefore, Skyway is not in a position to commit to the Department that it will have the capability to provide 19 seat aircraft for this SAG service for the upcoming term.

Counsel: Silverberg Goldman, Robert Silverberg, 202-944-3300

OST-1999-5175 - EAS at Iron Mountain/Kingsford, MI
OST-1999-5712 - EAS at Ironwood, MI/Ashland, WI
OST-1996-1711 - EAS at Manistee/Ludington, MI
OST-2003-15128 - EAS at Escanaba, MI

February 16, 2007

Requests for Community Comments of:

• Gogebic-Iron County Airport Authority Chairman
• Gogebic-Iron County Airport Manager
• Wisconsin Department of Transportation Secretary

In anticipation of the end of Skyway Airlines’ current contract on May 31, 2007, the Department issued Order 2007-1-2 on January 5, 2007, to solicit proposals from all interested air carriers to provide EAS at the four communities identified above, for a new two-year term. In response to that order, Skyway Airlines indicated that it is disposing of its fleet of Beech 1900 aircraft, a process that is expected to be completed prior to the end of the next two-year term, and therefore did not submit a long-term proposal. It did, however, submit a request for a higher subsidy rate beginning June 1 in the event carrier transition has not occurred by then. Skyway Airlines will continue to provide EAS at all four communities until a new carrier inaugurates service so that there will be no hiatus in service. Great Lakes Aviation, Ltd. and Mesaba Aviation, Inc. were the only carriers to submit proposals for a new two-year term.

We request that you review the carriers’ proposals 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 March 9, 2007.

By: Brian Swanson

OST-1996-1711 - Manistee/Ludington
OST-1999-5175 - Iron Mountain/Kingsford
OST-1999-5712 - Oshkosh, WI
OST-2003-15128 - Escanaba

February 28, 2007

Re: Delta County Airport Request for an Extension

March 1, 2007

Re: Delta County Airport Granted 7-Day Extension to File Comments

By letters to the communities listed above, dated February 16, the Department offered Escanaba, Michigan the opportunity to provide comments on the essential air service proposals submitted by Great Lakes Aviation, Ltd. and Mesaba Aviation, Inc. The deadline for comments was set as March 9, 2007. In an e-mail dated February 28th, the Manager of the Delta County Airport requested a 7-day extension to file comments. We are hereby granting the community's request and extending the date for comments from the communities listed above until March 16, 2007.

By: EAS & Domestic Analysis, Dennis DeVany

March 15, 2007

Delta County Airport in Support of Mesaba Airlines | Word

In 2000, before Delta County became an EAS community, the airport supported enplanements of over 20,000.  There have been no major economic changes in the area since then.  The current air carrier, Midwest Connect, with service to Milwaukee, increased its boardings after they became the EAS carrier to a level just under 10,000. The clientele who use this airline to reach their destination have been pleased with Midwest’s customer service but many citizens and business members of the community are unable to get where they need to go efficiently and are forced to make other complicated arrangements. This is having a negative impact on the economic well being of our community.

With nonstop service to Detroit in a Saab aircraft and connections to the world this community will have the opportunity to grow and make full use of its essential air service. Mesaba Airlines serves the state of Michigan and will provide this community with the vitally needed access to the rest of the state.

By: Airport Manager, Connie Ness

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

March 22, 2007

Re: Memorandum - Documents Placed in Wrong Docket

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

By: EAS & Domestic Analysis

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