Great Lakes Aviation, Ltd.

OST-2004-19825 - 90-Day Notice to Terminate EAS - Santa Fe, New Mexico

November 30, 2004

Notice to Terminate Scheduled Air Service at Santa Fe, New Mexico

At the time of the filing of this notice, Great Lakes Aviation, Ltd. operating as Great Lakes Airlines provides service at Santa Fe, New Mexico. Great Lakes' schedules are operated utilizing its own ZK two-letter code and reservation system. The Company also provides high quality connections through Denver, sold through its Frontier Airlines and United Airlines code-share agreements.

Great Lakes' service at Santa Fe currently consists of four daily non‑stop round‑trips to Denver International Airport, with frequency adjustments made during periods of high and low traffic, in 19‑seat Raytheon/Beech 1900D Airliner equipment Denver is a major connecting hub for Frontier Airlines and United Airlines.

Great Lakes Airlines provides the only scheduled passenger air service at Santa Fe, New Mexico. The Company will experience in November 2004 a 64% load factor having provided approximately 2800 customers with seats yet generate a loss in excess of $30,000. The Company has been reducing frequency of service and increasing local fares, but the rate of decline in the value of connecting passenger revenue has overcome the cost reductions associated with the capacity adjustments, and profitability has not been achieved.

By: Great Lakes, David Thomas, 307-432-7050

Order 2005-1-3
OST-2004-19825 - EAS at Santa Fe, NM

Issued January 7, 2004 | Served January 12, 2004

Order Terminating Subsidy Eligibility | Word

The Department has already determined that Santa Fe is located less than 70 highway miles from Albuquerque International Airport, and that determination was not challenged. We have confirmed that Albuquerque remains a medium hub based on the most recent hub classification published by the Federal Aviation Administration, making it ineligible to receive service subsidized under the EAS program. There is nothing to preclude any carrier from providing on‑demand or scheduled service at Santa Fe at any time. Our action here simply affirms that the Department cannot authorize subsidy for Great Lakes' service. Thus, the Department is allowing Great Lakes to suspend its scheduled air service at Santa Fe on or after March 1, 2005.

By: Karan Bhatia

November 2, 2007

Notice of Great Lakes Aviation of Termination of Service

Great Lakes service at Santa Fe consists of two daily nonstop round trips to Denver International Airport utilizing 19-seat Raytheon/Beech 1900D Airliner equipment. Denver is a major connecting hub for Frontier Airlines and United Airlines. Great Lakes Airlines currently provides the only scheduled passenger air service at Santa Fe, New Mexico.

On July 23, 2007, American Eagle, the regional affiliate of American Airlines, announced that they will add nonstop service between its Dallas/Fort Worth hub and Santa Fe Municipal Airport, beginning Dec. 13. The airline will also start nonstop weekend service from Los Angeles International Airport to Santa Fe on Dec. 14. American Eagle will operate both round-trip services using 44-seat Embraer ERJ-140 jets.

On July 24, 2007 Delta Connection carrier ExpressJet Airlines, announced they will add nonstop service between Los Angeles and Santa Fe Municipal Airport, as well as, nonstop service between Salt Lake City and Santa Fe Municipal Airport beginning December 10, 2007 to Los Angeles and December 11, 2007 to Salt Lake City. ExpressJet Airlines will operate two nonstop daily flights to Los Angeles and four nonstop daily flights to Salt Lakes City utilizing 50-seat Embraer regional jet aircraft.

The additional services, announced this past summer, offered by Delta Airlines and American Airlines affiliates caused Great Lakes to discontinue its services effective December 10, 2007.

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

November 9, 2007

Re: Comments of The City of Santa Fe on Great Lakes' Terminaiton Notice

Great Lakes Aviation re-filed their DOT-required ninety day notice to terminate scheduled air service to Santa Fe effective December 10, 2007 in a November 2, 2007 document. As you may remember, they did the same thing about two years ago but never left the market.

Their primary rationale for discontinuing service to SAF is that American Eagle Airlines and Delta Airlines are going to provide service from that day forward. Unfortunately, a required Environmental Assessment is taking an extended period to complete and start-up of air service from the two new airlines is being significantly delayed. The FAA's latest estimate is that the earliest the EA could be completed is "midJanuary" 2008 and probably later. Therefore the effect of the premature Great Lakes decision to discontinue service is that SAF will have no scheduled air service from at least December 10, 2007 through Jan 31, 2008 (American Eagle's current start date) or even later.

We believe Great Lakes requested effective date for discontinuing service should be more in line with the anticipated EA completion timeframe. This would allow for uninterrupted passenger air service for Santa Fe. Therefore, we request consideration be given for a more reasonable effective date consistent with the projected EA completion timeframe if Great Lakes' request to terminate SAF service is to be approved.

By: Mayor David Coss

Order 2007-11-17
OST-2004-19825

Issued November 21, 2007 | Served November 27, 2007

Order Allowing Suspension of Service

We will allow Great Lakes to suspend its service at Santa Fe as of January 7, in order to ensure that the community receives uninterrupted service throughout the holiday season.  Moreover, that date falls roughly between the December 10 date requested by Great Lakes, on the one hand, and the end of the full 90-day notice period on February 3.

As discussed earlier, Santa Fe’s service is not eligible for subsidy under the statute.  Because we cannot pay subsidy for Great Lakes’ service, we cannot require Great Lakes to continue service beyond the end of the 90-day notice period.

We are mindful that Great Lakes has continued to serve the Santa Fe community for another three years, rather than leaving when it could.  In addition, Great Lakes’ departure will not leave Santa Fe without any scheduled service prior to the arrival of the regional-jet services of Delta Connection and American Eagle, since the community also receives some service from Pacific Wings.  In view of all the circumstances, we conclude that a January 7 date for Great Lakes’ departure represents a reasonable accommodation, since it is roughly halfway between December 10 and February 3, and also covers the holiday travel season.

By: Michael Reynolds