Great Lakes Aviation, Ltd.

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Presentation transcript:

Great Lakes Aviation, Ltd. Provider of Essential Air Service for over 30 years throughout Midwest and Western regions of the United States.

Meet Our Fleet Beechcraft 1900D 28 aircraft EMB120 Brasilia 6 aircraft 19 seat turboprop EMB120 Brasilia 6 aircraft 30 seat turboprop Flight Attendant Lavatory

Business Model Equipment branded as Great Lakes Local segment service sold as Great Lakes (ZK) Codeshare with United Airlines (UA). Electronic Interline ticketing agreements with American Airlines, Delta Airlines, and United Airlines.

Codeshare with United Airlines Allows passengers to effortlessly transfer to a United flight. Baggage transfer to final destination. Access to over 100 domestic and international destinations

Marketing &Ticketing Sold on major travel agencies Expedia Travelocity Priceline Also sold on our website Flygreatlakes.com

Before the United States Department of Transportation Washington, DC February 22, 2016   Essential Air Service at PAGE, ARIZONA Docket OST-1997-2694 under 49 U.S.C. 41731 et.seq. This document contains the response of Great Lakes Aviation, Ltd. to Order Requesting Proposals 2017-30 Great Lakes Aviation, Ltd. is pleased to submit these proposals to provide essential air transportation to Page, Arizona and the Lake Powell region. Our proposals provide conveniently timed schedules to our Phoenix, Los Angeles and Denver hubs, whereby passengers may utilize our code-share agreement with United Airlines. In addition to our code-share agreement with United Airlines, Great Lakes maintains electronic interline ticketing and baggage agreements with American, Delta and United. Passengers will also be eligible for Delta Sky Miles Frequent Flyer program when travel is booked through Delta's sales channels. All of which will offer passengers traveling to and from these communities supplemental access to the domestic and international air transportation system. The Company has created a pilot domiciling program that facilitates a significantly improved quality of life by enabling pilots to return home every night. By not relying on pilots that routinely commute to a hub to originate their duty day a pilot can enjoy more time available to be home with family. This practice will improve the quality of service and contribute to improved reliability of service for the communities. Great Lakes is proposing two service alternatives for Page. The first proposal consists of Beech 1900D service configured with 19 seats in a schedule that follows historical seasonal patterns. As a optional summer seasonal service the company would be prepared to offer a Regional Jet rate subject to additional US DOT and community negotiation regarding optimal scheduling and the airport meeting the additional certification requirements for a 50 seat regional jet. Questions and comments may be referred to: Philip Lundeen Chief Financial Officer Great Lakes Aviation, Ltd. 1022 Airport Parkway Cheyenne, WY 82001 (307) 432-7000

Phoenix (non-stop) and/or 19 Seat Beech 1900D $2,282,818 20,000 $92.94 Table of Contents: Subsidy Passengers Avg Bid Service Points Hub Options Equipment Requirement Forecast Fare   1 Page Phoenix (non-stop) and/or 19 Seat Beech 1900D $2,282,818 20,000 $92.94 Denver (one-stop) /and or Los Angeles (one-stop) 2 Denver (non-stop) 124 departures in 37 to 50 seat $482,112 3,000 $114.75 Regional Jet option

Great Lakes Aviation, Ltd. Annual Compensation Requirements for Essential Air Service at Page, Arizona to Phoenix (PHX), Los Angeles (LAX) and/or (DEN) one-stop B1900 - (nineteen seat configuration) (at 98 percent completion) Departures: 1,936 Operating Revenues: Passenger: PGA 20,000 psgrs at $92.94 $1,858,800 Other: (at 0.62% of passenger revenue) $11,525 Total Operating Revenues: $1,870,325 Operating Expenses: Direct: Aircraft and Hull Insurance $395,725 Fuel and Oil $870,315 Flying Operations $640,879 Maintenance $1,015,914 Total Direct Expenses: $2,922,833 Total Indirect Expenses: $1,032,541 Total Operating Expenses: $3,955,374 Operating Loss ($2,085,049) Profit Element (5.0% of Total Operating Expenses) $197,769 Annual Compensation Requirement: $2,282,818 Historical published schedules should be used as sample service levels. Hub options eligible for subsidy are Phoenix (non-stop) and/or Denver (one-stop) or Los Angeles (one-stop). As has been occurring in recent years, Great Lakes would operate four peak day round trip departures with reduced service to three round trips in shoulder periods and two round trips per day in off peak seasonal periods. Schedules would be coordinated with community input. No less than 1,936 annual departures would be operated assuming a 98% completion factor. This Proposal is submitted with no upline scheduling restrictions

Great Lakes Aviation, Ltd. Optional Compensation Requirements for Essential Air Service at Page, Arizona to Denver (DEN) Season Regional Jet option - Three round trips per week for 21 weeks (at 98 percent completion) Departures: 21 weeks - May 15th through October 6th 124 Block Hours 189 RPM's PGA- DEN miles 420 1,260,000 ASM'S available seats/dept 50 2,604,000 Load Factor 48.4% Operating Revenues: Passenger: PGA 3,000 psgrs at $114.75 $344,250 Other: (at 0.62% of passenger revenue) $2,134 Total Operating Revenues: $346,384 Operating Expenses: Direct: Aircraft and Hull Insurance $84,207 Fuel and Oil $220,462 Flying Operations $71,847 Maintenance $184,318 Total Direct Expenses: $560,834 Total Indirect Expenses: $228,210 Total Operating Expenses: $789,044 Operating Loss ($442,660) Profit Element (5.0% of Total Operating Expenses) $39,452 Annual Compensation Requirement: $482,112 Subsidy per departure $3,888 Subsidy per passenger $161 If the community is interested in negotiating Regional Jet service, Great Lakes would provide the community with 3 round trips per week of service for the Summer season peak. The schedule recommended for this type of product offering would be a overnight aircraft with a 7:00 AM departure to Denver and a evening return leaving Denver at 6:30 PM. This Regional Jet offering relies upon use of a contracted partnership with a FAR Part 121 air carrier and Great Lakes. The proposal also assumes that all FAA FAR part 139 airport certification requirements can be complied with for the operation of the regional jet aircraft.