OST-1998-3508
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OST-1998-3508
Essential Air Service at Cortez, Colorado
OST-1998-3508 - Cortez
February 17, 1998
Re: Ninety-day Notice of Suspension of Service at Durango,
CO
Service List | Exhibit A - Durango, CO
Answers are due by March 9, 1998.
Counsel: V. Michael Strauss, 202.785.2242
Order 98-3-32 | OST-98-3521 | OST-98-3508 | OST-98-3502 | OST-98-3503 | OST-98-3496 | OST-98-3497 | OST-98-3498 | Issued March 30, 1998 | Served April 3, 1998
By: Charles Hunnicutt
| Order 98-11-20 OST-98-3508 |
Issued November 20, 1998 Served November 24, 1998 |
Order to Show Cause | Cortez, Colorado |
By: Charles Hunnicutt
| Order 00-12-26 OST-98-3508 |
Issued December 29, 2001 Served January 3, 2001 |
Order to Show Cause | 90-Day Notice of Suspension - Cortez, CO |
| Attachments | |||
| Service List |
Order 2000-12-26 tentively reselects Great Lakes Aviation Ltd., d/b/a United Express (Great Lakes), to provide subsidized essential air service at Cortez, Colorado, for a new two-year rate term at an annual subsidy rate of $403,311 effective October 1, 2000. Interested persons having objections to the selection of Great Lakes to provide service described in an at the rate set forth in Appendix C, are directed to file such objections or competing service proposals no later than 20 days from the date of service of this order.
Great Lakes submitted a proposal in response to our request. As a result of discussions with Department staff, the carrier has agreed to a new rate term for the two-year periodfrom October 1, 2000, through September 30, 2002. Specifically, Great Lakes proposesto continue operating 18 nonstop Cortez-Denver round trips a week with 19-seat Beech 1900s at an annual subsidy rate of $403,311.
By: Francisco Sanchez
| OST-98-3508 | March 1, 2002 Docketed April 5, 2002 |
Re: City of Cortez to Petition the Essential Air Service Program for Replacement of Great Lakes Airlines | 90-Day Notice of Suspension at Cortez, CO |
By this letter, the City of Cortez hereby petitions the Essential Air Service program for replacement of Great Lakes Airlines (GLA). As of this date, GLA is in arrears to the Cortez Municipal Airport in the amount of $18,215. This represents eight months of rent and seven months of landing fees unpaid. This represents 15% of our annual revenue. Numerous promises of payment have been met with disappointment. We can no longer operate under these conditions and are not in a position to "subsidize" GLA further.
By: City of Cortez, Russ Machen
| Order 02-07-34 OST-97-2960 OST-97-2958 OST-97-2959 OST-97-2981 OST-98-3508 OST-99-6589 |
Issued July 26, 2002 Served July 31, 2002 |
Order Requesting Proposals | Essential Air Service at Alamosa, Colorado - Rock Springs, Laramie, Worland, WY - Cortez, Pueblo, CO - 90-Day Notice to Suspend Service |
| Appendices |
By various orders in 2000, Great Lakes Aviation, Ltd. (Great Lakes) was selected to provide subsidized Essential Air Service (EAS) to each of the above communities. Under our normal procedures when nearing the end of a subsidy rate term, we contact the incumbent carrier to determine whether it is interested in continuing service and whether it will continue to require subsidy. We usually negotiate a new subsidy rate with the carrier, issue an order tentatively reselecting it for a new rate term at the agreed rate, and direct other parties to show cause why we should not finalize our tentative decision. Other carriers wishing to submit competing proposals are invited to do so in response to the show-cause order; if any such proposals are filed, we process them as a competitive case. However, the Department recently became aware of other carriers that are interested in providing EAS at one or more of the above communities. In view of this situation, and to save time, we will forego our discussions with Great Lakes and immediately initiate a formal carrier selection case. Thus, we are issuing an order seeking replacement service proposals for essential air service at each of the communities for new two-year contract periods.
By: Read C. Van de Water
| OST-97-2960 OST-98-3508 OST-99-6589 |
August 19, 2002 Docketed August 29, 2002 |
Proposal to Provide EAS by Scenic Airlines | Essential Air Service at Alamosa, Cortez & Pueblo, CO |
By: Mary Schneider
| OST-97-2960 OST-97-2958 OST-97-2959 OST-97-2981 OST-98-3508 OST-99-6589 |
August 20, 2002 Docketed August 29, 2002 |
Response of Mesa Air Group to Request for Proposals | Essential Air Service at Alamosa, Colorado - Rock Springs, Laramie, Worland, WY - Cortez, Pueblo, CO - 90-Day Notice to Suspend Service |
By: Mesa Air Group, Scott Lyon
| OST-98-3508 | September 6, 2002 | Proposal of Great Lakes Aviation | 90-Day Notice of Suspension at Cortez, Colorado |
By: Great Lakes, Douglas Voss
Order 04-01-10
OST-97-2960 - Alamosa, Colorado
OST-98-3508 - Cortez, Colorado
OST-99-6589 - Pueblo, Colorado
Issued January 13, 2004 | Served January 16, 2004
Order Requesting Propsals | Word
By this order, the Department is requesting proposals from carriers interested in providing essential air service at the three Colorado communities listed above for a future two-year period, with or without subsidy.
Great Lakes has served all of these communities since 1998. During the year ended March 31, 2003, the most recent 12-month period for which traffic data are available, Alamosa averaged 12.5 enplanements a day, Cortez 19.0, and Pueblo 5.8 . These figures represent declines of 18 to 52 percent from levels registered during calendar year 2000, prior to the terrorist attacks of September 11.
By: Karan Bhatia
Order 04-03-5
OST-98-3508 - EAS at Cortez, Colorado
OST-97-2958 - EAS at Laramie, Wyoming
Issued March 9, 2004 | Served March 12, 2004
Order Setting Final Rates | Word
By this order, we are setting past-period and prospective subsidy rates for Great Lakes Aviation’s provision of essential air service at Cortez, Colorado, and Laramie, Wyoming. First, adjusting for the effects of the September 11 terrorist attacks, we are setting rates retroactive to October 1, 2001, through the end of the contract periods. Second, we are setting rates from the end of those respective contract periods until further Department action.
By: Karan Bhatia
March 29, 2004
Re: Request for Community Comments from Russ Machen, Cortez Community Airport
I would like to update you on the essential air service situation at Cortez and to give you an opportunity to submit any comments if you wish. As you know, by Order 2004-1-10, January 13, 2004, the Department solicited proposals from all interested air carriers to provide service at Alamosa, Cortez, and Pueblo. In response to that order, we received 27 proposal options from Great Lakes Aviation, Ltd., and Mesa Air Group, Inc. d/b/a Air Midwest. While we would normally write up a brief summary of all of the proposals, that is not practical in this case given the number of options. 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: Essential Air Service Division, Dennis DeVany
March 29, 2004
Re: Request for Community Comments from Travis Vallin, Colorado Department of Transportation
By: Essential Air Service Division, Dennis DeVany
March 29, 2004
Re: Request for Community Comments from The Honorable Cheryl Baker
By: Essential Air Service Division, Dennis DeVany
April 15, 2004
Re: Response of the City of Cortez to Proposals
Our first choice is with Mesa Airlines and their "Option 14", which includes two roundirs to Denver and one‑round trip to Phoenix. The request is $1,104,947 in AS support. We feel the morning and evening round‑trip to Denver will provide the necessary service to our business clients. They will be able to make meetings in Denver by catching an early flight and come back the same evening. A new flight, round‑trip to Phoenix, would increase our vacation usage. We have a number of business people Vim also have businesses in Phoenix. We have had many requests for service to Phoenix so that travelers could reach Southwest Airlines and America West Airlines for connections.
Our second choice is three rounci‑lripslo Denver provided by Great Lakes Airlines for an EAS subsidy of $853,587. Tho reason for this request is that it is cheaper than "Option 5" from Mesa All' Group Jr three non‑stops to Denver.
By: Hal Shepard
Order 04-07-10
OST-97-2960 - Essential Air Service at Alamosa, CO
OST-98-3508 -90-Day Notice of Suspension - Cortez, CO
OST-99-6589 - Ninety Day Notice to Terminate Service at Pueblo, Colorado
Issued July 15, 2004 | Served July 20, 2004
Order Selecting Carrier and Setting Final Subsidy Rates | Word
After a thorough review of the carriers' proposals and the communities' comments, we have decided to select Great Lakes to continue providing Alamosa's and Cortez's service for a new two-year period. We are selecting Mesa/Air Midwest to provide service at Pueblo. Our decision is consistent with the communities' preferences and statutory criteria. The two carriers' proposed rates are reasonable, and both carriers' service at these and other subsidized essential air service communities continues to be satisfactory.
Both communities seek upgrades to the service that they are currently receiving in the form of service to a second hub (Albuquerque or Phoenix). As we fully discussed in Order 2004-5-15, May 20, 2004 (making essential air service carrier selections at five Nebraska communities), though, we are disinclined to support new service to second hubs.
By: Karan Bhatia
Order 2006-4-5
OST-1997-2960 - EAS at Alamosa, CO
OST-1998-3508 - EAS at Cortez, CO
Issued April 5, 2006 | Served April 10, 2006
By Order 2004-7-10, July 15, 2004, the Department selected Great Lakes Aviation, Ltd., to provide essential air service with subsidy support at Alamosa and Cortez, Colorado, through July 31, 2006, at annual subsidy rates of $1,083,538 and $853,587, respectively. Under that order, Great Lakes provides three nonstop round trips to Denver on weekdays and weekends, with Beech 1900D aircraft for each community.
As the end of the current rate term approaches, we are here requesting proposals from carriers interested in providing service at Alamosa and/or Cortez, with or without subsidy, for the two-year period beginning August 1, 2006. Carriers should file their proposals within 30 days of the date of service of this order.
With specific respect to Alamosa and Cortez, we expect proposals consisting of service, at a minimum, with two-pilot. twin-engine aircraft with at least 15 passenger seats, and offering three round trips to Denver each weekday and each weekend with 19-passenger aircraft or two round trips a day with 30-seat aircraft. In order to give the Department and the communities as broad an array of proposals as possible from which to choose, carriers are also welcome to prepare more than one service option; they need not limit themselves to these requirements if they envision other, potentially more attractive service possibilities, different hubs, for example, with subsidy requirements that remain competitive.
By: Todd Homan
OST-1997-2960 - Alamosa
OST-1998-3508 - Cortez
April 10, 2006
Mesa Air Group, Inc d/b/a Air Midwest is pleased to submit five proposals to provide Essential Air Service at Alamosa & Cortez, Colorado. Mesa's proposed options would contemplate service to Albuquerque, Colorado Springs, Phoenix, and/or Salt Lake City. Mesa proposes to operate the flights to Phoenix and Salt Lake City as America West/US Airways and the flights to Albuquerque and Colorado Springs as Mesa Airlines.
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. Mesa has a long history of offering Essential Air Service throughout the country, from Utah to New York.
Option #
Hub(s)
Service
Annual Subsidy
1
SLC
2 RT: CEZ to SLC (One-stop)
$699,173
PHX
1 RT: CEZ to PHX (Non-stop)
CEZ to PHY (Non-stop)
2
PHX
3 RT Mon-Wed-Fri, 2 RT Tue-Thu-Sun,
1RT Sat$1,079,873
3
ABQ
3 RT: ALS to ABQ (Non-stop)
$1,248,986
4
ABQ
2 RT: ALS to ABQ (Non-stop)
$849,421
5
ABQ
2 RT: ALS to ABQ (Non-stop)
$799,705
COS
2 RT: ALS to COS (Non-stop)
ALS to PHY (One-stop)
6
PHX
CEZ to PHX (Non-stop)
3 RT Mon-Wed-Fri, 2 RT Tue-Thu-Sun,
1RT Sat$1,939,467
Counsel: Mesa, Mickey Bowman
May 10, 2006
Proposals of Big Sky Airlines - Bookmarked | Word
The Big Sky proposal encompasses service between both Alamosa and Cortez and Denver with three well timed flights each weekday and three flights during the weekend, for a total of eighteen weekly flights. The annual EAS subsidy required for this service pattern to Cortez is $798,044 and to Alamosa is $944,610.
Denver to Cortez Cortez to Denver Flight No. Leave Arrive Frequency Flight No. Leave Arrive Frequency 1 9:10am 10:30am X67 2 6:20am 7:33am Daily 3 2:43pm 4:03pm X6 4 10:50am 12:03am X67 5 7:05pm 8:25pm Daily 6 4:17pm 5:30pm X6
Denver to Alamosa Alamosa to Denver Flight No. Leave Arrive Frequency Flight No. Leave Arrive Frequency 1 10:40am 11:38am X67 2 6:34am 7:34am Daily 3 4:40pm 5:38pm X6 4 11:55pm 12:55pm X67 5 7:30pm 8:28pm Daily 6 5:55pm 6:55pm X6
Counsel: Big Sky, Fred deLeeuw, 406-247-3912, fred.deleeuw@bigskyair.com
May 10, 2006
Proposals of Great Lakes Aviation
The Great Lakes proposals contemplate conveniently timed connecting services with our Code Share partners United and Frontier at our Denver Hub. For each of these cities, Great Lakes proposes a schedule package that continues the current service pattern of three round trips into Denver. Our code share agreements will give both of these Colorado communities the greatest competitive opportunity available.
In addition, for both Alamosa and Cortez, Great Lakes offers a proposal that would, in coordination with the city and at the company's discretion, allow the third round trip to go to an alternate hub. In the case of Alamosa, we have proposed that one of the three trips could go to Albuquerque, and in Cortez's case, we would offer service to either Phoenix or Las Vegas over Page, Arizona.
Proposal No. Service Point Hub(s) Served Round Trips Equipment Subsidy Requirement Passengers Forecast Subsidy per Passenger 1 Alamosa Denver 3 1900D $1,150,268 12,000 $95.86 2 Alamosa Denver, Albuquerque 2/1 1900D $1,150,642 11,150 $103.20 3 Cortez Denver 3 1900D $796,577 17,519 $45.47 4 Cortez Denver, Phoenix or Los Angeles 2/1 1900D $796,953 15,278 $52.16
Counsel: Great Lakes, Michael Matthews, 307-432-7030, mmatthews@greatlakesav.com
OST-1997-2960 - Alamosa
OST-1998-3508 - Cortez
May 24, 2006
Requests for Community Comments of:
I would like to update you on the essential air service situation at Alamosa and give you an opportunity to submit any comments if you wish. As you know, by Order 2006-4-5, April 10, 2006, the Department solicited proposals from all interested air carriers to provide service at Alamosa, as well as Cortez. In response to that order, we received a total of seven proposal options from three carriers for Alamosa - Big Sky Airlines, Great Lakes Airlines, and Mesa Air Group d/b/a Air Midwest. Big Sky submitted one proposal, Great Lakes submitted a proposal with two options, and Mesa Air Group d/b/a Air Midwest submitted a proposal with four options for Alamosa, including one option that involves Cortez.
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.
We request that you review each proposal and service option and submit any comments you may have before we submit a recommendation to the Assistant Secretary. Because we may be unable to give your community their preferred option, we request that you provide us with your preferred choice along with more than one additional option, ranked in order of preference. We ask that you submit any comments you may have as soon as possible, but in any case no later than June 25, 2006.
By: Dennis DeVany
June 14, 2006
City of Cortez in Support of Great Lakes Aviation Option #1
The Cortez City Council, after receiving and reviewing community comments, hereby supports the re-selection of Great Lakes Airlines as the Essential Air Service Contract air carrier. We support Option #1 which maintains the status quo of 18 weekly round trips to Denver, CO. We are quite satisfied with GLA in their service and dependability.
By: Mayor Orly Lucero
Order 2006-7-19
OST-1997-2960 - Alamosa
OST-1998-3508 - Cortez
Issued July 17, 2006 | Served July 20, 2006
By Order 2004-7-10, issued July 20, 2004, the Department selected Great Lakes Aviation, Ltd., to provide subsidized EAS at Alamosa and Cortez for the two-year period through July 31, 2006. That order established subsidy rates of $1,083,538 and $853,587 per year for Alamosa and Cortez, respectively, with each community receiving three weekday and three weekend nonstop round trips to Denver with 19-passenger Beech 1900D aircraft.
In anticipation of the end of the rate term, the Department issued Order 2006-4-5 on April 10, 2006, soliciting proposals to provide efficient essential air service, with subsidy support if necessary. at Alamosa and Cortez, for a new, two-year period.
By this order, we are selecting Great Lakes Aviation, Ltd. to provide subsidized essential air service at Alamosa and Cortez, Colorado, for two years, beginning August 1, 2006. Alamosa will receive three nonstop round trips to Denver each weekday and weekend (18 total round trips per week) at an annual subsidy rate of $1,150,268. Cortez will receive three nonstop round trips to Denver each weekday and weekend at an annual subsidy rate of $796,577. Each community will be served with 19- passenger Beech 1900-D aircraft.
By: Michael Reynolds
OST-1997-2960 - Alamosa
OST-1998-3508 - Cortez
April 11, 2007
Re: Letter from Paula Jean and Louis Parsons
It was a pleasure to speak with you today. It was quite a chore to find anyone that was interested in my problem and quite a relief to finally discover you. This letter will detail the problem. Also, more importantly, I request that you (or someone in what I believe you referred to as the "Billing Department") do an investigation to verify that Great Lakes Aviation is not committing fraud. I think the body of the letter will show that the Airline is playing funny games at the minimum.
Order 2008-3-14
OST-1997-2960 - Alamosa
OST-1998-3508 - Cortez
Issued and Served March 14, 2008
By this order, the Department is requesting proposals from carriers interested in providing essential air service at Alamosa and/or Cortez, Colorado, for a new two-year period, with or without subsidy, beginning August 1, 2008. Carriers should file their proposals no later than April 10.
By Order 2006-7-19, July 17, 2006, the Department selected Great Lakes Aviation, Ltd. to provide subsidized EAS at Alamosa and Cortez for the two-year period through July 31, 2008. That order established annual subsidy rates of $1,150,268 at Alamosa and $796,577 at Cortez, for service consisting of three nonstop round trips to Denver on weekdays and weekends, with 19-seat Beech 1900D aircraft for each community.
By: Todd Homan
OST-1997-2960 - Alamosa
OST-1998-3508 - Cortez
April 10, 2008
Re: Proposal of Great Lakes Aviation
Great Lakes will provide service at these points in Colorado as Great Lakes Airlines. The company will also continue to offer the benefits of it code share agreements with United Airlines and Frontier Airlines.
By: Great Lakes, Michael Matthews, 307-432-7000
April 16, 2008
Requests for Community Comments of:
As you know, by Order 2008-3-14, issued March 14, 2008, the Department solicited proposals from air carriers interested in providing essential air service at the communities in anticipation of the end of the current contract on July 31, 2008. In response to that order, the incumbent, Great Lakes Aviation, Ltd. was the only carrier to submit a proposal.
While there are no options from which to choose, we nonetheless wanted to give you an opportunity to submit any comments on the record, if you wish, before we present our recommendation to the Assistant Secretary who will make the final decision in this case. We ask that you submit any comments you have as soon as possible, but in any case no later than April 29.
By: Dennis DeVany
Order 2008-5-24
OST-1997-2960 - Alamosa
OST-1998-3508 - Cortez
Issued and Served May 20, 2008
By this order, the Department is reselecting Great Lakes Aviation, Ltd., dlb/a United Express, to provide essential air service at annual subsidy rates of $1,853,475 at Alamosa, Colorado, and $1,297,562 at Cortez, Colorado, through July 31, 2010.
The reselection of Great Lakes at these communities at the service and subsidy levels proposed is straightforward. We find that Great Lakes' subsidy proposal is reasonable for the three daily round trips that Order 2008-3-14 determined was appropriate. Traffic has grown significantly at each community, and Alamosa fully supports Great Lakes. While Cortez did not submit comments, the community has historically been supportive of Great Lakes. Compared to prior subsidy levels required by Order 2006-7-19, $555,359 of the $703,207 additional subsidy at Alamosa was due to increased fuel costs; and $448,828 of the $500,895 additional subsidy at Cortez was due to increased fuel costs.
By: Michael Reynolds
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