Lakes only rebid two cities through Kansas City hub, they dropped the rest

Before the United States Department of Transportation
Washington, DC
August 17, 2009
Essential Air Service at
BURLINGTON, IOWA Docket OST-2001-8731
FORT LEONARD WOOD, MISSOURI Docket OST-1996-1167
under 49 U.S.C. 41731 et.seq.
This document contains the response of Great Lakes Aviation, Ltd. to Order Requesting
Proposals 2009-7-9
Great Lakes Aviation, Ltd. is pleased to submit these proposals to provide essential
air transportation at these points in Iowa and Missouri.
In accordance with the instructions in the order to provide a "final and only" proposal,
Great Lakes has provided a description of the proposed service to each of these
Essential Air Service points.
Great Lakes will provide service at these Essential Air Service points in a similar
fashion as is currently offered and utilize our interline agreements with select major
carriers that enable connecting bag service through the hub. In addition, we have
code-sharing arrangements with United Airlines and Frontier Airlines. As connecting
schedules and frequencies allow and when practical, we will be offering the benefits of
of the code-share agreements.
All proposals contemplate the use of 19 seat Beechcraft 1900D airliner equipment.
Questions and comments may be referred to:
Michael O. Matthews
Chief Financial Officer
Great Lakes Aviation, Ltd.
1022 Airport Parkway
Cheyenne, WY 82001
(307) 432-7000
Table of Contents:
Subsidy Passengers Average
Proposal Service Point(s) Hub(s) Served Round Trips Equipment Requirement Forecast Fare
Part
1 Burlington Kansas City 3 1900D $1,997,602 7,000 $98.72
2 Fort Leonard Wood Kansas City or Saint Louis 3 1900D $1,292,906 12,750 $107.02
at
Great Lakes discretion

Great Lakes Aviation, Ltd.
Annual Compensation Requirements for Essential Air Service at
Burlington, Iowa
(at 98 percent completion)
Departures: 1,840
Block Hours: 1,840
Revenue Passenger Miles: 1,519,000
Available Seat Miles: 7,586,320
Operating Revenues:
Passenger: BRL 7,000 psgrs at $98.72 $691,040
Other: (at 0.62% of passenger revenue) $4,284
Total Operating Revenues: $695,324
Operating Expenses:
Direct: Aircraft and Hull Insurance $335,757
Fuel and Oil $792,021
Flying Operations $298,393
Maintenance $485,282
Total Direct Expenses: $1,911,453
Total Indirect Expenses: $653,239
Total Operating Expenses: $2,564,692
Operating Loss ($1,869,368)
Profit Element (5.0% of Total Operating Expenses) $128,235
Annual Compensation Requirement: $1,997,602
Bid assumes current schedule would serve as a representative schedule
Great Lakes Aviation, Ltd.
Annual Compensation Requirements for Essential Air Service at
Fort Leonard Wood, Missouri
(at 98 percent completion)
Departures: 1,840
Block Hours: 1,564
Revenue Passenger Miles: 2,244,000
Available Seat Miles: 615,960
Operating Revenues:
Passenger: TBN 12,750 psgrs at $107.02 $1,364,505
Other: (at 0.62% of passenger revenue) $8,460
Total Operating Revenues: $1,372,965
Operating Expenses:
Direct: Aircraft and Hull Insurance $335,757
Fuel and Oil $746,264
Flying Operations $253,634
Maintenance $450,004
Total Direct Expenses: $1,785,659
Total Indirect Expenses: $753,266
Total Operating Expenses: $2,538,925
Operating Loss ($1,165,960)
Profit Element (5.0% of Total Operating Expenses) $126,946
Annual Compensation Requirement: $1,292,906
Bid assumes current schedule would serve as a representative schedule

What fun would the internet be, then?

(PS, I know quite a bit about EAS bidding. I also know quite a bit about Lakes having worked there. Please don't make assumptions without doing the research.)

what shocks me is how ZK didn't bid any of these markets into ORD... i mean, that was the company's largest ops in the 90s. I remember when we used up all of F1 - F5 (well, most of F1 - there was a section blocked off for the United Freight & Mail folks).

No one bidding has an actual codeshare that will be useful. Gulfstream can't get CO to agree to use their code in STL, CapeAir has the same issues, and the one codeshare that gives them *some* flexibility doesn't fly to STL. This is going to be an independent run-down to see who can build traffic the best, and like AVS said, Caterpillar, ADM, and Tate & Lyle are not using the Decatur Airport.

I fly into Bloomington on AirTran when I can and drive down... its a shame that I just can't get a good connection back home to DEC.

3M, according to what I have been able to find, is courting a codeshare with AA. However if that doesnt work it appears they have a backup plan, its confusing and I'll spare the boring details, as you can look it up, but they seem confident that it will work. Only Time will tell. My gut at this point tells me, you will see 1900's flying under Americans colors in St. Louis soon. However, I have been wrong before many times:D.

... as American continues to emulate USAirways in Pittsburgh.

Wait, I think USAirways has more mainline flights in PIT than AA does in STL....

Damn that is a close call.:eek:

either way, it's just depressing as hell.

Touche'- please dont get offended by my simple observation:D but you are a pilot after all so............

Driving time from:

Quincy, IL - STL: 2 hours and 20 minutes

Decatur, IL - STL: 2 hours and 20 minutes

Cape Girardeau, MO - STL: 2 hours and 20 minutes

Marion, IL - STL: 2 hours and 10 minutes

Talk about pointless to have airline service to/from these places, especially to an airport as worthless as STL. How many millions of dollars is the taxpayer spending on this crap? The simple answer is "too much." There is nothing essential about this air service.

yeah, and up here in DEC it's 1 hr or less to 3 other airports with RJ service to ORD, DTW, ATL, MSP, DFW.