OST-2002-13983 - EAS at Grand Island, NB

Objection of Grand Island to Great Lakes Termination of EAS

December 12, 2002

Essential Air Service at Grand Island, Nebraska

Great Lakes' three daily flights are the only passenger air service provided to our community. While we believe that the service should be improved, even this basic level of service is vital to the economic welfare of our local citizens. The whole purpose of the Essential Air Service program is to protect communities such as ours, who depend on EAS to provide necessary links to the nation's air service network. We understand that Great Lakes says it has experienced substantial losses in the Grand Island market. We believe that enhancing the level of service to be provided would render the air service more attractive to passengers, especially business passengers. We would welcome DOT's review of the appropriate level of service under 49 U.S.C. §47133(e) and would look forward to participating as an "interested community" in consultations with the Department.

By: Jay Vavricek

Essential Air Service at Grand Island, Nebraska

Objection of the Hall County Airport Authority to Great Lakes Aviation Terminate of EAS

December 12, 2002
Docketed December 13, 2002

Essential Air Service at Grand Island, Nebraska

Great Lakes is currently providing the service at a zero subsidy. The Authority understands that, pursuant to 49 U.S.C. § 41734, the normal next step would be for DOT to issue an order holding the airline in and requesting carrier proposals to provide the service for compensation. In conjunction with that process, the Authority requests that the DOT perform the review and consultations prescribed by 49 U.S.C. §41733(e), to determine "appropriate adjustments" to the level of service to be provided to the Airport, and to use that adjusted service level as the basis for the request for proposals.

During the requested review, the Authority will propose that the current level of service be changed to provide for (a) use of larger aircraft; (b) direct, not one-stop, service; and (c) service to Minneapolis rather than Denver.

The Authority believes that the decline in passenger counts and the resulting decrease in revenues identified by Great Lakes are attributable to characteristics of the current service that render it unattractive to local passengers, and especially to local business passengers. In particular, the provision of service exclusively to the west ill-serves central Nebraska travelers, most of whom are traveling to destinations east of Grand Island. Previous planning and business development studies done for the Authority clearly show that the bulk of the central Nebraska market would be better served by service to east-bound hubs such as Minneapolis, Kansas City, or St. Louis. Improved service to east-bound hubs would effectively recapture the lost market that is currently traveling out of the region to obtain air service.

Counsel: Spiegel McDiarmid, Rise Peters, 202 879-8000

Essential Air Service at Grand Island, Nebraska

Order 03-02-10
OST-02-13983

Issued February 12, 2003
Served February 18, 2003

Order Prohibiting Termination of Service and Requesting Proposals

Essential Air Service at Grand Island, Nebraska - Great Lakes AviationBy:

By this order, the Department is (a) prohibiting Great Lakes Aviation, Ltd., from terminating its unsubsidized essential air service at Grand Island, Nebraska; (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, through April 2, 2003; and (c) requesting proposals from air carriers interested in providing essential air service at Grand Island.

We will solicit proposals from carriers interested in providing replacement service at Grand Island. We note that Grand Island has averaged impressive levels of enplanements in past years, peaking at over 64 enplanements a day for calendar year 1993. During the community’s period of peak traffic, however, the carrier(s) serving the point offered service to as many as five different hubs—far more than current EAS program funding levels permit us to underwrite with subsidy support. However, we note that traffic at Grand Island has declined sharply to sixteen enplanements a day for the most recent annual period for which we have data. Therefore, we request proposal options that would provide the community with service to either of its designated hubs of Denver or Omaha consisting of at least two or three round trips a day, nonstop or one-stop, six days a week, with twin-engine, two-pilot, 15-passenger-seat or larger, 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. We will also entertain proposals to serve other hubs, such as Kansas City, Minneapolis, St. Louis, or Chicago, that provide access to the national air transportation system in order to give the Department and the community as broad an array of proposals as possible from which to choose. As always, we will formally solicit the community’s views on any service options we receive before making a long-term carrier selection decision.

By: Read C. Van de Water

Essential Air Service at Grand Island, Nebraska

Request for Extension of Time by MultiAero

March 7, 2003

Intent to Terminate Scheduled Air Service

By: D. Wood

Essential Air Service at Grand Island, Nebraska

Essential Air Service at Grand Island, Nebraska

Issued March 10, 2003
Served March 10, 2003

Notice of Extension

Microsoft Word

90-Day Notice of Intent to Terminate Scheduled Air Service at Grand Island, Nebraska

By Order 2003-2-10, issued February 12, 2003, served February 18, 2003, the Department requested proposals from air carriers interested in providing essential air service at Grand Island, Nebraska. These proposals were due within 20 days after the date of service of Order 2003-2-10, i.e., by March 10, 2003. We have received a request from MultiAero, Inc., for a twenty-day extension of this due date. In support of its request, MultiAero affirms that it will deliver to the Department of Transportation all required documentation on or before March 31, 2003. We will grant this request. As is our normal practice, we will therefore grant all potentially interested applicants until March 31, 2003, to submit service proposals for any or all of the subject points.

By: Dennis DeVany

Proposal of Multi-Aero Inc

March 28, 2003

Essential Air Service at Grand Island, Nebraska

The following proposal is for 3 round trip flights per day from Grand Island, NE (GRI) to Kansas City, MO (MCI). The aircraft we will be using is a 19000 or D model. We will start out with 9 seats available and increase to 14 in six to eight months, both have lav on board. Our company is seeking subsidy of $875,815 dollars. Upon acceptance of our bid we will be looking at a 60 to 90 day start date. Based on the information we feel the 9 seats meet the current demand. However, we will pursue authorization from the FAA to move into the 14 seat configuration as soon as possible. We estimate the time frame at 6 months. We are currently talking with Midwest Express about sharing their gates and possibly connecting with some of their current flights. We feel this will ad to the service we our wanting to provide.

By: Darnea Wood

OST-02-13983	March 28, 2003	Response of Mesa Air Group to Request for Competitive Proposals	Essential Air Service at Grand Island, Nebraska
		Exhibit 1 - Market Subsidy Calculation
		Exhibit 2 - Schedule
		Exhibit 3 - Aircraft Operating Expenses - Historical
		Exhibit 4 - Operating Traffic Statistics - Historical
		Exhibit 5 - Aircraft Operating Expenses - Projected

By: Scott Lyon, 602-685-4368, scott.lyon@mesa-air.com

May 21, 2003

OST-02-13983 - Essential Air Service at Grand Island, Nebraska

Proposal of Great Lakes Aviation

By: Douglas Voss

Essential Air Service at Grand Island, Nebraska

Issued July 11, 2003 | Served July 16, 2003

Order 03-7-14
OST-02-13983 - EAS at Grand Island, NE

Correspondence from Central Nebraska Regional Airport

The Department extends the service obligation of Great Lakes Aviation, Ltd. (Great Lakes), at Grand Island, Nebraska, for an additional 30 days, through August 1, 2003

By: Randall Bennett

July 14, 2003

OST-02-13983 - EAS at Grand Island, NE

By: Harold Rosenkotter

Essential Air Service at Grand Island, Nebraska

Issued July 30, 2003 | Served August 4, 2003

Order 03-7-32
OST-02-13983 - EAS at Grand Island, NE

Order 2003-7-32, the Department extends the service obligation of Great Lakes Aviation, Ltd. (Great Lakes), at Grand Island, Nebraska, for an additional 30 days, through September 2, 2003.

By: Randall Bennett

Essential Air Service at Grand Island, Nebraska

Issued August 26, 2003 | Served August 29, 2003

Order 03-8-26
OST-02-13983 - EAS at Grand Island, NE

Although we have received proposals, this case will not be completed by the end of this holdin period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes' service obligation at Grand Island, for an additional 30 days, or until reliable replacement service actually begins, whichever occurs first.

By: Randall Bennett

Essential Air Service at Grand Island, Nebraska

Order 03-10-4
OST-02-13983 - EAS at Grand Island, NE

Issued October 1, 2003 | Served October 6, 2003

Order Extending Service Obligation

On December 2, 2002, Great Lakes filed a 90-day notice of its intent to suspend its unsubsidized service at Grand Island, effective March 3, 2003.2 By Order 2003-2-10, February 12, 2003, the Department prohibited Great Lakes from suspending service beyond the end of its 90-day notice period, through April 2, 2003, 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 October 2, 2003, by Order 2003-8-26.

By: Randall Bennett

Essential Air Service at Grand Island, Nebraska

Order 03-10-29
OST-02-13983 - EAS at Grand Island, NE

Issued October 29, 2003 | Served November 3, 2003

Although we have received proposals, this case will not be completed by the end of this hold-in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes' service obligation at Grand Island, for an additional 30 days, or until reliable replacement service actually begins, whichever occurs first.

By: Randall Bennett

Essential Air Service at Grand Island, Kearney, McCook, Norfolk, North Platte, and Scottsbluff, Nebraska

Order 03-12-2
OST-02-13983 - EAS at Grand Island, NE
OST-96-1715 - EAS at Kearney, NE
OST-97-3005 - EAS at McCook, NE
OST-98-3704 - EAS at Norfolk, NE
OST-99-5173 - EAS at North Platte, NE
OST-03-14535 - EAS at Scottsbluff, NE

Issued December 2, 2003 | Served December 5, 2003

Order Requesting Proposals

The Department had already issued orders requesting proposals from carriers interested in serving these communities. However, by letter dated July 14, 2003, the Mayor of Grand Island, the Chairman of the Hall County Airport Authority, and the Chair of the Hall County Board of Supervisors requested that the Department seek proposals offering Grand Island service to a hub to the east, rather than to Denver. In addition, other communities (especially Kearney) have indicated that they, too, are interested in seeking alternatives to the status quo. Further, we have decided to make an additional effort to seek service for Norfolk that falls within the statutory $200 per passenger ceiling. As a result, we ask carriers to construct their proposals so that the subsidy attributable to Norfolk can be readily identified or allocated. (We emphasize that this does not necessarily assure Norfolk of continued eligibility for subsidized service, nor does it grant the community an indefinite time period to attempt to boost its traffic levels. We are primarily interested in seeing proposals for Norfolk that potentially exhibit lower overall costs than the traditional Norfolk-North Platte-Denver package.) Moreover, essential air service at Nebraska communities has traditionally been interconnected to a significant extent. (For example, two of Grand Island's three flights to Denver currently make an intermediate stop at McCook, and Norfolk's service to Denver involves a stop at either Grand Island or Kearney.) Based on all of the above, we find that this is clearly a case that merits being processed in one comprehensive case under our new, streamlined carrier selection procedures.

By: Michael Reynolds

Essential Air Service at Grand Island, Nebraska

Order 03-12-5
OST-02-13983 - EAS at Grand Island, NE

Issued December 3, 2003 | Served December 8, 2003

For a number of reasons, we recently reissued a Request for Proposals for six communities in Nebraska. (See Order 2003-12-2.) Proposals are due January 5, 2004. Therefore in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes' service obligation at Grand Island for an additional 30 days, or until reliable replacement service actually begins, whichever occurs first.

By: Michael Reynolds

Essential Air Service at Grand Island, Nebraska

Order 03-12-5
OST-02-13983 - EAS at Grand Island, NE

Issued December 3, 2003 | Served December 8, 2003

Order Exending Service Obligation

By: Michael Reynolds

EAS at Grand Island, Nebraska

Order 03-12-21
OST-02-13983

Issued December 23, 2003 | Served December 30, 2003

We recently reissued a Request for Proposals for six communities in Nebraska. (See
Order 2003-12-2.) Proposals are due January 5, 2004. Therefore in accordance with
49 U.S.C. 41734(c), we will extend Great Lakes’ service obligation at Grand Island for an
additional 30 days, or until reliable replacement service actually begins, whichever occurs
first.

By: Randall Bennett

Essential Air Service at Grand Island, Kearney, McCook, Norfolk, North Platte, and Scottsbluff, Nebraska

OST-02-13983 - EAS at Grand Island, NE
OST-96-1715 - EAS at Kearney, NE
OST-97-3005 - EAS at McCook, NE
OST-98-3704 - EAS at Norfolk, NE
OST-99-5173 - EAS at North Platte, NE
OST-03-14535 - EAS at Scottsbluff, NE

December 30, 2003

Re: Extension of Due Date for Proposals (Letter to Northwest on behalf of Mesa)

We have received your letter on behalf of Mesaba Airlines requesting an extension to submit its proposal to provide EAS at Grand Island, Nebraska, in response to Order 2003-12-2. That order also requested proposals for Kearney, McCook, Norfolk, North Platte and Scottsbluff. We also received a letter from the Hall County (Grand Island) Airport Authority supporting your request. Because we issued a Request for Proposals for the six communities in Nebraska as a package, we hereby grant your request and will extend the due date for all interested carriers to submit proposals for all six communities to January 20, 2004.

By: Dennis DeVany

Re: Comments of Grand Island Airport Air Service Task Force

January 12, 2004

By: Virgil Eihusen

January 20, 2004

Response of Westward Airways to Request for Proposals

Westward Airways desires to forward a service proposal for Dockets OST-1 996-1715 and OST-1998-3704. Although Westward Airways is not yet operational, the Company has been awarded its Final Order proposing issuance of a Certificate of Public Convenience and Necessity for Interstate Air Transportation (Docket OST-02-14071)

By: Westward, Kristi Feusner, 308-220-2838

December 23, 2003

Re: Proposal of Corporate Airlines for Service at Grand Island, NE

Enclosed are two proposals for Grand Island, NE. One envisions one-stop service to St. Louis over Kansas City utilizing 19 seat J32 aircraft. The projected cost covers only the GRI-MCI flying, and nothing for the MCI-STL leg. The other proposal is based on the utilization of 30 seat EMB equipment serving St. Louis nonstop from Grand Island. We would operate either proposed service as American Connection.

By: Fred Breeden, 615-223-6844

January 20, 2004

Proposal of Great Lakes Aviation

Great Lakes Aviation, Ltd. Hereby submits our proposals to provide essential air transportation at these points in Nebraska

By: Great Lakes, Dave Thomas, 307-432-7000

January 22, 2004

Proposal of Mesa Air Group (Replaced)

Pages Inadvertently Ommitted by DOT Staff

The bids Mesa is submitting have varying levels of frequency and link some of the communities in different service patterns. Mesa has also enclosed several options which offer service to Kansas City. The Kansas City options were based on feedback from the communities and provide enhanced air travel options.

By: Mesa, Scott Lyon, 602-685-4368

January 20, 2004

Proposal of Mesaba Airlines - Grand Island, Nebraska

Attached please find details of the application of Mesaba Aviation, d/b/a Mesaba Airlines (Mesaba) for EAS subsidy between Minneapolis/St. Paul, MN and Grand Island, Nebraska. Mesaba would provide this service as Northwest Airlink, beginning service no later than June 10, 2004, with some flexibility to begin service earlier if necessary. We propose to operate twice daily nonstop round-trips between these cities, excepting one MSP-GRI trip on Saturday, and one GRI-MSP trip on Sunday.

By: Mesaba, John Spanjers

January 19, 2004

Proposal of Multi-Aero - Norfolk, Nebraska

Attached please find our proposal to provide Essential Air Service at Norfolk, Nebraska. We will utilize 19‑seat, twin‑engine, pressurized aircraft, initially configured for 14 passengers and fitted with an onboard lavatory. We will operate three round‑trips per day, with an intermediate stop at Lincoln, Nebraska. Worksheets detailing our forecasted operations and a preliminary schedule are included with this submission.

We have chosen a Lincoln‑Kansas City routing based upon discussions with Norfolk officials and our analysis of the respective markets. Revenue estimates are based upon historical information, together with anticipated increases due to a more reasonable fare structure. Operating expenses are based on our own experiences in aviation operations and the aircraft manufacturer's actual direct cost operating history.

By: Mutli-Aero, Darnea Wood

Proposal of Corporate Airlines

January 26, 2004

By: Corporate Airlines

Essential Air Service at Grand Island, Nebraska

Order 04-2-2
OST-02-13983

Issued February 2, 2004 | Served February 5, 2004

Order Extending Service Obligation

Because rate negotiations had stalled, we recently reissued a Request for Proposals for six communities in Nebraska, including Grand Island. (See Order 2003‑12‑2.) Although we have received proposals, this case will not be completed before 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 Grand Island for an additional 30 days, or until reliable replacement service actually begins, whichever occurs first.

By: Randall Bennett

Service List for Great Lakes' Proposal

January 30, 2004

By: Great Lakes, Dave Thomas

February 18, 2004

Re: Letter from EAS Division to Central Nebraska Airport - Update on Essential Air Service and Request for Comments

Re: Letter from EAS Division to Nebraska Department of Aeronautics - Update on Essential Air Service and Request for Comments

Re: Letter from EAS Division to Ernest Dobesh, Mayor of Grand Island, Nebraska - Update on Essential Air Service and Request for Comment

I would like to update you on the essential air service situation at the current Nebraska essential air service situation and to give you an opportunity to submit any comments if you wish. As you know, by Order 2003-12-2, December 2, 2003, the Department solicited proposals from all interested air carriers to provide service at Grand Island, Kearney, McCook, Norfolk, North Platte, and Scottsbluff. In response to that order, we received an unprecedented 59 proposal options from six carriers-Corporate Airlines, Great Lakes Aviation, Mesa Air Group, Mesaba Aviation, Multi-Aero, and Westward Airways.

My purpose in writing to you at this time is to request any final comments you might have on the carriers' service and subsidy proposals before we submit a recommendation on the carrier selection issue to the Assistant Secretary for Aviation and International Affairs.

By: Office of Aviation Analysis, Dennis DeVany

January 26, 2004

Re: Certificates of Service for Corporate Airlines, Inc.

By: Paul Cooper

Essential Air Service at Grand Island, Nebraska

Order 04-03-1
OST-02-13983

Issued March 3, 2004 | Served March 8, 2004

Re: Requesting a Seven Day Extension for EAS Comments

By: Randall Bennett

OST-96-1715 - EAS at Hastings and Kearney, Nebraska
OST-97-3005 - EAS at McCook, Nebraska
OST-98-3704 - EAS at Norfolk, Nebraska
OST-99-5173 - EAS at North Platte, Nebraska
OST-02-13983 - EAS at Grand Island, Nebraska
OST-03-14535 - EAS at Scottsbluff, Nebraska

February 25, 2004

Western Nebraska Regional Airport is formally requesting a seven day extension for EAS comments. The Airport Authority Board meeting is scheduled to meet Wednesday, March 18, 2004 which is the day the comments are due. The one week extension will allow time for the board to make an appropriate decision and relay the information to you. Thank you for your prompt attention to this matter.

By: Darwin Skelton

Issued and Served March 11, 2004

Notice of Extension

We have received a request dated February 25, 2004, from the Airport Manager of the Western Nebraska Regional Airport in Scottsbluff, requesting a seven-day extension for submitting the airport’s comments. In support of his request, the Airport Manager states that the Airport Authority Board meeting is scheduled for March 18, the day comments are due.

Because we recognize that scheduled meetings of local governmental bodies may occur at inopportune times relative to our letter, we will grant this request. Many of the proposals for the six Nebraska points involve routings that link two or more essential air service communities, therefore we will grant all of the civic parties an additional week, until March 25, 2004, to submit their comments on the service proposals for their communities.

By: Dennis DeVany

EAS at Grand Island and Scottsbluff, Nebraska

Order 04-3-9
OST-02-13983 - EAS Termination at Grand Island, NB
OST-03-14535 - EAS at Scottsbluff, NB - Notice of Great Lakes to Terminate Service

Issued March 12, 2004 | Served March 17, 2004

Order Setting Final Rates | Word

The Department has solicited proposals from air carriers interested in providing essential air service at Grand Island and Scottsbluff, most recently by Order 2003‑12‑2, December 2, 2003. There is a significant past period associated with Great Lakes Aviation's service at each of these two communities. For the past period, we are setting rates based on rate negotiations that we have completed with Great Lakes that will be effective from the effective dates of each of the carrier's notices of intent to terminate service through January 31, 2004. Beginning February 1, the carrier and Department staff have agreed to set the rates based on Great Lakes' bids that were submitted in a highly competitive environment. These rates will remain in effect until further Department action while we process the carrier selection proceedings at each community. We have reviewed the carrier's proposals and find these rates reasonable for the service provided.

By: Karan Bhatia

March 16, 2004

Re: Jay Vavricek, Mayor Letter in Support of Essential Air Service

On behalf of the City of Grand Island, it is our pleasure to submit this Letter of Support for Essential Air Service to provide eastbound air service from Kearney, Nebraska to Kansas City, Missouri, with one stop in Grand Island, and to provide westbound air service from Grand Island, Nebraska to Denver, Colorado, with one stop in Kearney, Nebraska.

The Central Nebraska Regional Airport and the Kearney Municipal Airport have joined forces to develop a Tri-City Initiative to bring affordable aid convenient options for air travel to serve more passengers in central Nebraska.

We pledge our full support, endorsement, and cooperation with the Tri-City Initiative to improve the service options available to central Nebraska through the Essential Air Service.

By: Jay Vavricek, Mayor

March 17, 2004

Re: City of Hastings Letter in Support of Denver-Kearney-Grand Island-Kansas City Route Operated by Great Lakes

In conjunction with the communities of Grand Island and Kearney, brings requests that the DOT select and fund the following route: Denver-Kearney-Grand Island-Kansas City with returning flights departing Kansas City en route to Grand Island, Kearney and ultimately, Denver. Further, we request that Great Lakes Aviation be selected as the carrier to provide this service using 19-passenger Beech 1900D aircraft. Hastings requests that the DOT fund a minimum of three nonstop departures each weekday from Grand Island to Kansas City (with at least two departures each Saturday and Sunday). Further. Hastings requests that the DOT fund a minimum of three direct departures each weekday from Grand Island to Denver via Kearney (with at least two departures each Saturday and Sunday). This selection corresponds to Great Lakes Aviation‘s Option #10 under its - "Proposal to Provide Essential Air Service - Docket OST-2002-13983." The total compensation requested by Great Lakes from the DOT to service airports in both Grand Island and Kearney totals $2,589.173.

By: Richard Sheehy, Mayor

March 18, 2004

Re: Hastings Economic Development Corporation Letter in Support

Now therefore be it resolved that the Hastings Economic Development Corporation Board of Directors, unanimously support the efforts of Hastings, Grand Island and Kearney to improve air service 10 and from Central Nebraska, by having Grand Island request Denver as a hub with one stop through the Kearney Municipal Airport, and having Kearney request Kansas City as a hub with one stop through the Grand Island Region Airport.

By: Jeff Andreasen, President

March 24, 2004

Re: Hall County Airport Authority Board Letter in Support

As agreed by this recommendation, all communities support the continuation of air service by the present respective air carrier Great Lakes Airlines. Additionally, they request the Secretary to approve the air service pattern proposed by Great Lakes Airlines Proposal #10 submitted on January 20,2004. Under this program, flights between Kearney and Kansas City would stop in Grand Island; conversely, those flights between Grand Island and Denver would stop in Kearney utilizing the current Beech 1900 aircraft.

By: Hall County Airport Authority Board

Essential Air Service at Grand Island, Nebraska

Order 04-05-04
OST-02-13983 - EAS at Grand Island, NE

Issued April 2, 2004 | Served April 7, 2004

By this order, the Department of Transportation extends the service obligation of Great Lakes Aviation, Ltd., at Grand Island, Nebraska, for an additional 30 days, through May 3, 2004.

By: Randall Bennett

Essential Air Service at Grand Island, Nebraska

Order 04-20-04
OST-02-13983 - EAS at Grand Island, NE

Issued April 27, 2004 | Served April 30, 2004

Order Selecting Carrier, Setting Final Rates, and Terminating Essential Air Service Subsidy Eligibility

By this order, the Department of Transportation extends the service obligation of Great Lakes Aviation, Ltd., at Grand Island, Nebraska, for an additional 30 days, through June 2, 2004. Because rate negotiations had stalled, we recently reissued a Request for Proposals for six communities in Nebraska, including Grand Island. (See Order 2003-12-2.) By Order 2004-3-9, March 12, 2004, the Department set past-period and prospective subsidy rates for Great Lakes’ service at Grand Island, while the carrier selection case is being processed. The past-period rate was set at $1,041,184 for the period March 3, 2003, through January 31, 2004. The prospective rate was set at $866,464, effective February 1, 2004, until further Department action.

Although we have received proposals, this case will not be completed before 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 Grand Island for an additional 30 days, or until reliable replacement service actually begins, whichever occurs first.

By: Randall Bennett

Essential Air Service at Grand Island, Kearney, McCook, Norfolk, North Platte, and Scottsbluff, Nebraska

Order 04-5-15
OST-02-13983 - EAS at Grand Island, NE
OST-96-1715 - EAS at Kearney, NE
OST-97-3005 - EAS at McCook, NE
OST-98-3704 - EAS at Norfolk, NE
OST-99-5173 - EAS at North Platte, NE
OST-03-14535 - EAS at Scottsbluff, NE

Issued May 20, 2004 | Served May 25, 2004

By this order, we are selecting Great Lakes Aviation, Ltd., to provide essential air service with subsidy support at Grand Island, Kearney, McCook, North Platte, and Scottsbluff, Nebraska, for two years at a total annual subsidy of $5,233,287. We are also making final the termination of the eligibility of Norfolk, Nebraska, to receive subsidized essential air service proposed in Order 2003-6-25, June 19, 2003.

By: Karan Bhatia

Order 2006-3-10
OST-2002-13983 - Grand Island, NE
OST-1996-1715 - Kearney, NE
OST-1997-3005 - McCook, NE
OST-1999-5173 - North Platte, NE
OST-2003-14535 - Scottsbluff, NE

Issued and Served March 13, 2006

Order Requesting Proposals - Bookmarked

By Order 2004-5-15, May 25, 2004, the Department selected Great Lakes Aviation, Ltd., to provide essential air service with subsidy support at Grand Island, Kearney, McCook, North Platte, and Scottsbluff. Nebraska, through June 30, 2006, at a total annual subsidy of $5,233,287. Under that order, Great Lakes provides three nonstop round trips to Denver with Beech 1900D aircraft for each community. The associated annual subsidy rates for each community were set at $1,198,396 for Grand Island, $1,166,849 for Kearney, $1,502,651 for McCook, $870,504 for North Platte, and $494,887 for Scottsbluff.

As the end of the current rate term approaches, we are here requesting proposals from carriers interested in providing service at any or all of the five Nebraska communities, with or without subsidy, for the two-year period beginning July 1, 2006. Carriers should file their proposals within 30 days of the date of service of this order.

With respect to the Grand Island, Kearney, North Platte, and Scottsbluff, we expect proposals consisting of service, at a minimum, with two-pilot, twin-engine aircraft with at least 15 passenger seats, and offering two round trips each weekday and each weekend with 30-passenger aircraft or three round trips each weekday and each weekend with 19-passenger aircraft from the essential air service community to a suitable hub. Regarding McCook, we noted in the current carrier selection order that we were concerned about the low traffic levels, but agreed to continue to subsidize three round trips a day, and that we would seriously consider reducing that to two round trips a day if passengers levels did not increase. During the past two years, traffic has not risen to levels that warrant three round trips a day. During 2005, McCook averaged only 7.2 enplanements per day.

With respect to Grand Island, the community has asked that we encourage carriers to consider a proposal that would offer service to a suitable hub to the east, such as Kansas City, Minneapolis/St. Paul, or St. Louis for example. 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

OST-2002-13983 - Grand Island, NE
OST-1996-1715 - Kearney, NE
OST-1997-3005 - McCook, NE
OST-1999-5173 - North Platte, NE
OST-2003-14535 - Scottsbluff, NE

April 12, 2006

Request for Extension of Time to File Proposal for EAS at Grand Island, NE

Northwest Airlines would like to request an extension of time to file a proposal to provide essential air service at Grand Island, Nebraska. We request that the Department extend the deadline for filing proposals for 10 days.

Counsel: Northwest, Sally Veith, 202-842-2437, sally.veith@nwa.com

OST-2002-13983 - Grand Island, NE
OST-1996-1715 - Kearney, NE
OST-1997-3005 - McCook, NE
OST-1999-5173 - North Platte, NE
OST-2003-14535 - Scottsbluff, NE

April 12, 2006

Granting Request for Time Extension | Word

We have received your letter on behalf of Northwest Airlines requesting an extension to submit its proposal to provide EAS at Grand Island, Nebraska, in response to Order 2006-3-10. That order also requested proposals for Kearney, McCook, North Platte and Scottsbluff. Because we issued a Request for Proposals for the five communities in Nebraska as a package, we hereby grant your request and will extend the due date for all interested carriers to submit proposals for all five communities to April 21, 2006.

By: Dennis DeVany

OST-2002-13983 - Grand Island, NE
OST-1996-1715 - Kearney, NE
OST-1997-3005 - McCook, NE
OST-1999-5173 - North Platte, NE
OST-2003-14535 - Scottsbluff, NE

April 21, 2006

Proposal of Mesa Air Group, Inc. d/b/a Air Midwest - Bookmarked

Air Midwest is pleased to submit three proposals to provide Essential Air Service at these 5 Nebraska airports. Mesa's proposed options would contemplate combination service with hubs at Denver, Omaha or Kansas City. Mesa proposes to operate all flights as America West Express/US Airways Express.

All operations proposed would utilize our modem fleet of Raytheon/Beechcraft B-1900D airliners. These aircraft offer a very comfortable 19-seat, pressurized cabin with two turboprop engines.

To Denver To Kansas City To Omaha

Grand Island $59.00 $49.00

Kearney $59.00 $49.00

McCook $59.00 $49.00

North Platte $59.00 $49.00

Scottsbluff $69.00 $79.00

By: Mickey Bowman

April 20, 2006

Proposal of Big Sky Airlines - Bookmarked | Word

Market Weekday Flights Weekend Flights Proposed One-way EASYFARE Subsidy Requirement

1. Scottsbluff to Denver 3 3 $120 $625,252

2. McCook to Denver 3 3 $121 $1,893,012

3. McCook to Denver 2 2 $121 $1,242,209

4. North Platte to Denver 3 3 $123 $1,027,673

5. Kearney to Denver 3 3 $130 $1,362,543

6. Kearney to Denver (2 flights) and Kansas City (1 flight) 3 3 $130/$130 $1,355,226

7. Grand Island to Denver 3 3 $134 $1,582,363

8. Grand Island to Denver (1 flight) and Kansas City (2 flights) 3 3 $134/$99 $1,350,668

9. Grand Island to Denver (2 flights) and Kansas City (1 flight) 3 3 $134/$99 $1,479,045

10. Grand Island to Denver (1 flight) and Minneapolis (2 flights) 3 3 $134/$135 $1,555,079

Big Sky offers code-share service with its partners, Alaska Airlines, Horizon Air, America West Airlines, which became a much larger US Airways, after the completion of its merger, and Northwest Airlines.

Big Sky will operate the Nebraska service proposed herein with the 19-seat Beechcraft 1900D aircraft.

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

April 21, 2006

Proposal of Great Lakes Aviation - Bookmarked

Proposal Number Service Point(s) Hub(s) Served Round Trips Subsidy Requirement

1 McCook Denver 3 $1,911,246

2 McCook Denver 2 $1,383,894

3 North Platte Denver 3 $976,026

4 North Platte Denver 2 $720,577

5 Grand Island Denver 3 $1,390,707

6 Grand Island Denver 2 $862,267

7 Scottsbluff Denver 3 $520,137

8 Scottsbluff Denver 2 $503,444

9 Kearney Denver 3 $1,327,527

10 Kearney Denver 2 $929,055

11 McCook/Grand Island DEN/OMA or MCI 3 $2,250,384

12 Kearney Denver 3 $897,142

The Great Lakes proposal contemplates conveniently timed connecting services with our Code Share partners United and Frontier at our Denver Hub or East bound Hub. Our code share agreements will give each of these Nebraska communities the greatest competitive opportunity available.

The proposal contemplates the use of pressurized 19-seat Beech 1900D's or 30-seat Brasilias.

By: Great Lakes, Michael Matthews, 307-432-7030, mmathhews@greatlakesav.com

OST-2002-13983 - Grand Island, NE

April 20, 2006

Proposal of Mesaba Airlines

Mesaba Aviation, Inc. doing business as Northwest Airlink, is enclosing its detailed subsidy proposal for essential air service at Grand Island, NE at a level of two round-trip flights per day, using 34-seat Saab 340 aircraft from Northwest's MSP hub.

Depart MSP Arrive GRI Depart GRI Arrive MSP

1340 1540 0730 0940

2050 2300 1605 1805

By: Mesaba, John Spanjers

OST-2002-13983 - EAS at Grand Island, NE
OST-1996-1715 - EAS at Kearney, NE
OST-1997-3005 - EAS at McCook, NE
OST-1999-5173 - EAS at North Platte, NE
OST-2003-14535 - EAS at Scottsbluff, NE

April 27, 2006

I would like to update you on the essential air service situation at McCook and give you an opportunity to submit any comments if you wish. As you know, by Order 2006-3-10, March 13, 2006, the Department solicited proposals from all interested air carriers to provide service at Grand Island, Kearney, McCook, North Platte, and Scottsbluff. In response to that order, we received a total of 26 proposal options from four carriers ‑ Big Sky Airlines, Great Lakes Airlines, Mesa Air Group dlb/a Air Midwest, and Mesaba Airlines. While we would normally compose a brief summary of all of the proposals, that is not practical in this case given the number of options.

Re: Grand Island Chamber of Commerce Comments

May 18, 2006

By: Cindy Johnson

May 22, 2006

Re: Grand Island Hall County Convention & Visitors Bureau Comments

By: Renee Seifert

May 22, 2006

Re: Grand Island Area Economic Development Corporation Comments

By: Marian Ferguson

May 23, 2006

Re: Hall County Airport Authority Recommendation for Big Sky Airlines

This past winter, the Airport Authority hired Mead & Hunt consultants to complete a Passenger Demand Analysis. This study shows passengers in our catchment area are driving to other airports because of our high airfares. The Airport Board also took into consideration the projected annual passengers served. We want to wean ourselves off of Essential Air Service. With an estimated 15,000 annual passengers served, Big Sky Airlines Proposal #8 will help us reach non-reliance quicker. Big Sky Airlines is proposing $79.00 each way to Kansas City and $99.00 each way to Denver for the first six months.

By: HCAA

Re: City of Grand Island Support for Big Sky Airlines

May 24, 2006

On behalf of the City of Grand Island, it is our pleasure to submit this Letter of Support for EAS to provide five weekly round trip nonstop flights to Denver and thirteen weekly round trip nonstop flights to Kansas City as proposed by Big Sky Airlines.

By: Jay Vavricek

Hall County Airport Authority in Support of Big Sky Airlines

May 25, 2006

After evaluating all 11 proposals and input from the Grand Island community, we have selected Big Sky Airlines Proposal #8 with service to Kansas City and Denver. With a number of issues including cost, we felt the Big Sky Proposal #8 will best serve our community at this time. I will tell you there is tremendous community support for Minneapolis and at some time in the future, we would like to explore service to MSP.

By: Michael Olson

Hall County Board of Supervisors in Support of Big Sky Airlines

May 30, 2006

The Hall County Board of Supervisors supports the proposal from Big Sky Airlines for the 2006-2008 Essential Air Service contract. This proposal would provide twelve weekly nonstop roundtrip flights to Kansas City, Missouri and six weekly nonstop roundtrip flights to Denver, Colorado.

By: James Eriksen

June 5, 2006

Congressman Tom Osborne in Support of the Proposal of the City of Grand Island

I am writing in strong support of the proposal by the City of Grand Island for five weekly roundtrip nonstop flights to Denver, Colorado and thirteen weekly roundtrip flights to Kansas City, Missouri.

By: Tom Osborne

Order 2006-6-26
OST-2002-13983 - Grand Island, NE
OST-1996-1715 - Kearney, NE
OST-1997-3005 - McCook, NE
OST-1999-5173 - North Platte, NE
OST-2003-14535 - Scottsbluff, NE

Issued June 21, 2006 | Served June 26, 206

Order Selecting Carrier

By this order, we are selecting Air Midwest for service at Grand Island and McCook, Nebraska, for two years, beginning when the carrier inaugurates full service, at a total annual subsidy of $2,296,462 for both communities. Grand Island will receive two nonstop round trips to Omaha each weekday and weekend (12 total round trips per week) and one nonstop round trip each weekday and weekend to Kansas City (6 total round trips per week): McCook will receive two one-stop round trips each weekday and weekend to Omaha (12 one-stop round trips per week); both Grand Island and McCook will be served with 19-passenger Beech 1900-D aircraft.

We are also selecting Great Lakes Aviation, Ltd.. to provide essential air service with subsidy support at Kearney. North Platte, and Scottsbluff, Nebraska. for two years, beginning when Mesa Air Group d/b/a Air Midwest inaugurates service at Grand Island and McCook. at a total annual subsidy ofS2,393.305 ($897,142 for Kearney; $976,026 for North Platte; and $520,137 for Scottsbluff). Each community will receive three nonstop round trips to Denver each weekday and weekend (18 total round trips per week) with Beech 1900-D aircraft.

The total annual subsidy for all five Nebraska communities in this Order is $4,689,767 compared to the current rates of $5,233,287.

By: Michael Reynolds

Order 2006-6-26
OST-2002-13983 - Grand Island, NE
OST-1996-1715 - Kearney, NE
OST-1997-3005 - McCook, NE
OST-1999-5173 - North Platte, NE
OST-2003-14535 - Scottsbluff, NE

June 23, 2006

Clarification to Order 2006-6-26

Order 2006-6-26 reselected Great Lakes to provide EAS at Kearney, North Platte, and Scottsbluff beginning July 1, 2006, but selected Air Midwest to replace Great Lakes at Grand Island and McCook. As we discussed on page 6 of the Order, we want to keep all communities on the same time cycle. As stated in the "Action on Great Lakes' provision of service for an interim period" paragraph on page 7 of the Order, the Department will reset the two-year clock at all five Nebraska communities on the date that Air Midwest inaugurates service at Grand Island and McCook. Therefore, in Appendices C, pages 3 through 5, the effective period should read "Date of inauguration of service by Air Midwest at Grand Island and McCook through the end of the 24th month thereafter."

In addition, because Air Midwest will not be able to inaugurate service at Grand Island or McCook by July 1, we need to set short‑term payouts for Great Lakes for the two communities from July 1 until Air Midwest takes over. The attached appendices with subsidy per flight and weekly compensation ceilings for Great Lakes' service at Grand Island and McCook should have been included in Order 2006‑6‑26.

By: Kevin Schlemmer

OST-2002-13983 - Grand Island, NE
OST-1996-1715 - Kearney, NE
OST-1997-3005 - McCook, NE

July 13, 2006

Petition of Hall County Airport Authority for Modification of Order 2006-6-26 | Word

On June 26, 2006, the Hall County Airport Authority received from the Department of Transportation, Order 2006-6-26 “Order Selecting Carrier” for Grand Island. The Order selects Air Midwest to provide 12 total round trips to Omaha per week and 6 round trips to Kansas City per week.

In a special board meeting held on Monday, July 10, 2006, the Airport Authority Board unanimously approved a resolution authorizing the filing of this Petition for Modification of Essential Air Service Level for the purpose of requesting the Department to reconsider and modify the aforementioned Order.

The Hall County Airport Authority firmly believes that the designated EAS level as provided in the Order is inadequate, was entered in error, and should be modified for the following reasons:

The order did not properly consider the statutory criteria for selection of essential air service.
The order did not provide viable commercial air service for Grand Island.

We ask that the Department follow the Airport Authority Board’s earlier recommendation and award this contract to Big Sky Airlines and accept their proposal #8 providing 12 weekly non-stop flights to Kansas City and 6 weekly non-stop flights to Denver. This proposal is cost effective, provides for more reliable service, and is highly supported by the community.

By: Michael Olson

Comments of Senator Benjamin Nelson

July 24, 2006

As you know, the Hall County Airport Authority has filed a Petition for Modification of Essential Air Service Level asking the Department of Transportation to reconsider and modify Order 2006-6-26 “Order Selecting Carrier’’ for Essential Air Service communities in Nebraska. I encourage the Department to consider the arguments made in this petition and to work with the communities involved in finding a resolution to this matter.

Order 2006-6-26 selects Air Midwest to provide 12 total round trips to Omaha per week and 6 round trips to Kansas City per week. While they have long desired eastbound service out of Grand Island, the Airport Authority believes 12 round trip flights to Omaha will not provide viable air service to the community. For an eastbound route to be feasible for the community, they believe they would need service to a hub such as Kansas City, Minneapolis/St. Paul, or St. Louis.

I ask the Department to work with all of the communities affected by this Order in finding a satisfactory resolution to this matter. Obviously, this is an extremely important issue to my constituents in these EAS communities, and I greatly appreciate your assistance in addressing their concerns.

By: Benjamin Nelson

July 25, 2006

Comments of Congressman Tom Osborne

I am writing following a meeting with the Hall County Airport Authority Board and the Central Nebraska Regional Airport Manager on Saturday, July 15, 2006, to share with you my support for the Airport Authority Board’s appeal of the Department of Transportation’s decision to award the Essential Air Service Contract for the airport to Mesa Airlines. Instead, the Airport Authority Board has requested that the Department of Transportation reconsider its request to have the Essential Air Service contract awarded to Big Sky Airlines. Under Big Sky Airline’s proposal, the Central Nebraska Regional Airport would have both eastbound service through Kansas City and westbound service through Denver.

I understand the complicated nature of making these contract awards and appreciate the thoughtfulness with which they are made. However, the Hall County Airport Authority Board believes that the community would be better served if it had access to an eastbound flight to a larger airport than Omaha’s Eppley Field. Because of Grand Island’s proximity to Omaha, the Airport Authority Board believes that most possible passengers would choose to drive to Omaha, rather than fly from Grand Island to Omaha. Thus, the availability of flights to Omaha from Grand Island is not as appealing to the Grand Island community as flights to another city, such as Kansas City, would be.

The Hall County Airport Authority Board is committed to providing area residents with the best air transportation options possible. I hope that the Department of Transportation will seriously consider the appeal of the Essential Air Service decision and support the request for service to Kansas City and Denver with Big Sky Airlines.

By: Tom Osborne

Order 2006-8-2
OST-2002-13983 - Grand Island, NE
OST-1996-1715 - Kearney, NE
OST-1997-3005 - McCook, NE

Issued August 3, 2006 | Served August 8, 2006

Order Granting Motion to File and Denying Petition for Reconsideration

On July 13, 2006, the Hall County Airport Authority, on behalf of Grand Island filed a petition for reconsideration of Order 2006-6-26, stating that “the designated EAS level as provided in the Order is inadequate, was entered in error, and should be modified.” It claims (1) the Order did not properly consider the statutory criteria for selection of essential air service and (2) the Order does not provide viable coniniercial air service for Grand Island. It asks the Department to follow the Airport Authority Board’s recommendation and award this contract to Big Sky Airlines and accept their proposal #8 providing 12 weekly nonstop flights to Kansas City and 6 weekly nonstop flights to Denver.

With fewer passengers using the local airport, the Authority argues, its ongoing eligibility in the program could be in jeopardy because of the $200 subsidy-per-passenger cap.

By this order, the Department is granting the motion of Hall County Airport Authority to file a petition for reconsideration of Order 2006-6-26, issued June 26, 2006, and, upon review, denying its petition.

By: Michael Reynolds

OST-2002-13983 - Grand Island, NE

August 2, 2006

Comments of Senator Benjamin Nelson

As you consider your decision regarding the Petition for Modification of Essential Air Service Level filed by the Hall County Airport Authority Board, I wanted to once again highlight the concerns which have been raised about the air service established under Order 2006-6-26 and offer my assistance in resolving this matter to the benefit of all communities in Nebraska affected by the Order I, together with Rep. Tom Osborne, met with Grand Island officials last month to discuss the impact this Order will have on that city if it is not modified. It was made clear that the Order as it stands has little, if any, community support and will be detrimental to the Central Nebraska Regional Airport's goal of weaning itself from Essential Air Service support.

I understand the tremendous challenge the U.S. Department of Transportation has in trying to accommodate each EAS community's choice for air, service with the limited funds allocated for the EAS program. I do appreciate the effort you have made to find an appropriate balance for the communities in Nebraska and your attention to the fact that Grand Island has long desired eastbound service. However, the community of Grand Island believes the route to Omaha will not provide the service it needs to become self-sufficient and rid it of the need for the EAS subsidy.

I am hopeful you can take Grand Islands concerns into consideration and look toward the long‑term benefit of providing viable air service to this community that will ultimately reduce the overall subsidy need, rather than looking only at the short‑term savings of the current EAS package I also recognize the implications which modifying this order could have for other BAS communities in Nebraska. This is illustrative of the difficulty DoT has in trying to accommodate each community's desire for quality air service, which is why I again offer my assistance to you in working with these communities to resolve this matter in a maimer which is beneficial to all of them.

By: Benjamin Nelson