Great Lakes Aviation, Ltd.

Provider of Essential Air Service for over 30 years throughout Midwest and Western regions of the United States.

Company Overview

• Company founded on April 15, 1977 as Spirit Lake Airways by Douglas Voss and Ivan Simpson.  Incorporated October 25, 1979 as Great Lakes Aviation, Ltd.

• Initiated scheduled passenger service October 12, 1981.

• The Company provides scheduled passenger service under its FAR part 121 operating certificate.

• August 1985 Great Lakes Aviation was selected by the USDOT to provide the company’s first Essential Air Service Route.

• Received FAA certification adding Part 135 Operations Specifications to our 121 Certificate on March 18, 2014. 

• Currently providing scheduled passenger service at 13 airports in 7 states. 

• All scheduled flights are operated under the Great Lakes Airlines marketing identity. The Company operates hubs in Denver, Los Angeles, and Phoenix. 

• The Company utilizes its code share agreement with United Airlines at its Denver, Los Angeles and Phoenix hubs.  

• Currently employs approximately 398 aviation professionals.

EMB 120 Brasilia

Operated  EMB 120 fleet for 22+ years30 seat twin‐engine turbopropFlight AttendantLavatory

Current Staffing and Pilot Qualifications Embraer 120

All Pilots:• Trained to higher standard of FAA 14 CFR

121 subparts N and O.• Flights operate under FAA 14 CFR 121 Flight

rules.• Captains have a minimum of 2,500 hours• First Officers have a minimum of 1,500 hours

Business Model

• Equipment branded as Great Lakes

• Local segment service sold as Great Lakes (ZK)

• Codeshare with United Airlines (UA). 

• Interline ticketing agreements with American Airlines, Delta Airlines, and United Airlines. 

Codeshare with UA• Allows passengers to effortlessly transfer to a United flight. 

• Baggage transfer to final destination. 

• Access to over 100 domestic and international destinations.

Marketing and Ticketing 

• Sold on major travel agencies

– Expedia

– Travelocity

– Priceline

– Also sold on our website flygreatlakes.com

• Convenient Schedules• 2 RTs daily (M‐F), 12 RTs weekly• 30 available seats per departure

• LAX Hub‐ Terminal 6

• Security screening in Merced facilitates connections to United,   American, and Delta without the need to be rescreened in LAX. 

Customer Experience

Letter of Recommendation 

Before the United States Department of Transportation

Washington, DC

March 8, 2017

Essential Air Service at

MERCED, CALIFORNIA Docket OST-1998-3521

under 49 U.S.C. 41731 et.seq.

This document contains the response of Great Lakes Aviation, Ltd. to Order Requesting

Proposal 2017-1-31

Great Lakes Aviation, Ltd. is pleased to submit this proposal to provide essential air transportation to Merced, California.

Our proposal provides conveniently timed schedules to our Los Angeles hub, 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 Merced 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 community of Merced.

This proposal contemplates the use of Embraer EMB-120 Brasilia airliner equipment.

Questions and comments may be referred to:

Philip LundeenChief Financial OfficerGreat Lakes Aviation, Ltd.1022 Airport ParkwayCheyenne, WY 82001(307) 432-7000

Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service atMerced California to Los Angeles, California (LAX )

Two Round Trips - 30 Seat Aircraft98% completion factor

Departures: 1,223Block Hours: 1,529Revenue Passenger Miles: 5,720,000Available Seat Miles: 9,539,400

Operating Revenues:Passenger: MCE-LAX 22,000 psgrs at $77.90 $1,713,800

Other: (at 0.62% of passenger revenue) $10,626

Total Operating Revenues: $1,724,426

Operating Expenses:Direct: Aircraft and Hull Insurance $427,710

Fuel and Oil $729,007Flying Operations $467,828

Maintenance $719,738

Total Direct Expenses: $2,344,283

Total Indirect Expenses: $1,271,428

Total Operating Expenses: $3,615,711

Operating Loss ($1,891,286)Profit Element (5.0% of Total Operating Expenses) $180,786

Annual Compensation Requirement: $2,072,071

Representative Schedule*** [MCE] Merced, California ***

-------------------- D E P A R T U R E S --------------------FLT DPT ARR TO EQP FREQ

3011 6:00 7:15 LAX 30 Seat 123456

3014 14:10 14:34 LAX 30 Seat 12345.7

-------------------- A R R I V A L S --------------------FLT EQP FREQ FROM DPT ARR3014 30 Seat 123456 LAX 11:15 12:30

3018 30 Seat 12345.7 LAX 16:30 17:45

No Upline Scheduling Restrictions