-----------------------------------------------------------------------
  Order 2008-5-3

  Served: May 6, 2008
  -----------------------------------------------------------------------

**UNITED STATES OF AMERICA**

**DEPARTMENT OF TRANSPORTATION**

**OFFICE OF THE SECRETARY**

**WASHINGTON, D.C.**

Issued by the Department of Transportation

  -----------------------------------------------------------------------
  on the 6^th^ day of May, 2008

  -----------------------------------------------------------------------

+-----------------------------------------+----------------------------+
| Essential Air Service at                | **DOCKET                   |
|                                         | DOT-OST-2004-17617**       |
| > **DuBOIS, PENNSYLVANIA**              |                            |
| >                                       | **DOCKET                   |
| > **FRANKLIN/OIL CITY, PENNSYLVANIA**   | DOT-OST-1997-2523**        |
|                                         |                            |
| **GREENBRIER/WHITE SULPHUR SPRINGS/**   | **DOCKET OST-2003-15553**  |
|                                         |                            |
| **LEWISBURG, WEST VIRGINIA**            |                            |
|                                         |                            |
| Under 49 U.S.C. 41731 *et seq*.         |                            |
+-----------------------------------------+----------------------------+

**ORDER SELECTING CARRIER AND SETTING SUBSIDY RATES**

## Summary

By this order, the Department is selecting Gulfstream International
Airlines, Inc. (Gulfstream) to provide subsidized essential air service
(EAS) at DuBois and Franklin/Oil City, Pennsylvania, and
Greenbrier/White Sulphur Springs/Lewisburg (Lewisburg), West Virginia,
at a total annual subsidy rate of \$5,577,594 (\$2,020,095 for DuBois,
\$1,226,773 for Franklin/Oil City, and \$2,330,725 for Lewisburg) for
the two-year period beginning when Gulfstream inaugurates service
through the end of the 24^th^ month thereafter. (See Appendix A for a
map.)

## Background

On May 3, 2007, Air Midwest filed 90-day notices with the Department of
its intent to terminate its subsidized service at the three
above-captioned communities, as well as Athens, Georgia,[^1] effective
August 1. In response, the Department issued Order 2007-5-14, May 21,
2007, requiring Air Midwest to continue to serve the communities and
requesting proposals for replacement service. Gulfstream was the only
applicant, and by Order 2007-7-21,

July 31, 2007, we selected Gulfstream to provide EAS for DuBois,
Franklin/Oil City, and Lewisburg to Pittsburgh, and for Lewisburg and
Athens to Charlotte, for a combined annual subsidy of \$4,077,792. After
Gulfstream prepared and submitted its proposal, US Airways reduced
service at Pittsburgh, severely limiting the connection options
available at the airport. As a result, Gulfstream explored other service
options but none materialized. As of February 2008, Gulfstream had not
yet inaugurated service and could not provide the Department a date when
it would do so. In response, the Department issued Order 2008-2-11,
February 6, 2008, requesting another round of proposals for EAS. In
response, we received only one proposal, from Gulfstream. Its proposal
for these three communities was contingent upon its being selected at
Watertown, New York, and on negotiating a code-share agreement with
Continental Airlines to serve its Cleveland hub operation. Under Order
2008-3-15, the Department selected Hyannis Air Service, Inc. d/b/a Cape
Air (Cape Air) to serve Watertown, thus rendering that proposal to serve
DuBois, Franklin/Oil City, and Lewisburg moot. Therefore, by Order
2008-3-22, we issued a third request for proposals for these three
communities.

**Proposal of Gulfstream International Airlines**

Gulfstream was the only carrier to submit a proposal and its proposal
offers two options, both with service with 19-passenger Beech 1900
aircraft and operating under its existing codeshare agreement with
Continental Airlines. Under Option 1, DuBois would receive 19 weekly
nonstop round trips to Cleveland, paired with 12 weekly nonstop round
trips between Franklin/Oil City and Cleveland. Lewisburg would receive
13 weekly nonstop round trips to Cleveland. The total annual subsidy is
\$5,695,910, for the three communities (\$2,121,145 for DuBois,
\$1,215,514 for Franklin, and \$2,359,252 for Lewisburg). Under Option
2, DuBois would receive 12 weekly nonstop round trips to Cleveland,
along with 12 weekly one-stop round trips between DuBois and Cleveland
operating via Franklin/Oil City. Under this option, DuBois would receive
four weekday turns and Franklin/Oil City would benefit from a third
weekday turn on a one-stop routing via DuBois. Lewisburg would receive
13 weekly nonstop round trips to Cleveland. The total annual subsidy for
Option 2 is \$5,577,594, for the three communities (\$2,020,095 for
DuBois, \$1,226,773 for Franklin, and \$2,330,725 for Lewisburg).
Gulfstream's complete proposal may be accessed online through the
Department's Dockets Management System at: http://www.regulations.gov/
by doing a "search" on docket number DOT-OST-2004-17617,
DOT-OST-1997-2523, or DOT-OST-2003-15553.

**Community Comments**

Although the Department received only one proposal, by electronic mail,
dated April 22, 2008, we notified community officials and airport
managers of each of the three communities and solicited any comments
they wished to submit.

***DuBois***

The Clearfield-Jefferson Counties Regional Airport Authority notified us
that they had "reviewed the proposal submitted by Gulfstream
International Airlines and find that Option No. 2 is most acceptable.
The Authority is eager to begin working with Gulfstream with a new
destination and carrier affiliation."

***Franklin/Oil City***

We received a letter from Otho Bell, manager of Venango Regional
Airport. It stated, "The County of Venango County and Venango Regional
Airport enthusiastically endorse and support Gulfstream International
Airline's bid, Option 2, to provide air carrier service to Franklin/Oil
City." A letter from Robert E. Heller, the Mayor of the City of
Franklin, also supports Option 2 and further states that the past eleven
months have taken a tremendous toll on the community and its air service
as the current carrier has downsized its infrastructure in anticipation
of leaving its EAS markets and that the City of Franklin is "very
anxious to get Gulfstream started." We also received a letter from Randy
Seitz, President/COO of the Oil Region Alliance. He states that the
Alliance supports Gulfstream's proposal under option #2 to operate as
Continental Express through the Cleveland Hopkins International Airport.
He states that the Alliance conducted a survey of the local businesses
to see what it would take for them to use the Venango County Airport and
"\[a\] large portion of the replies listed business friendly air times
and reliability. The current provider has been unable to offer these
services."

***Greenbrier Valley Airport Authority***

We received a letter from Jerry O'Sullivan, Manager of the Greenbrier
Valley Airport. It states that after reviewing the proposal and
discussions with Mickey Bowman (from Gulfstream), the Airport Authority
"decided to strongly endorse the Gulfstream International Airline
proposal with twice daily service to Cleveland."

**Decision**

One applicant submitted a proposal, with two options. All three
communities support Option 2. It is the less expensive option and it
offers a greater number of flight options for DuBois and Franklin/Oil
City. We find that both the service and subsidy levels are reasonable.
Therefore, we will select Gulfstream International Airlines, Inc. for a
two-year period, beginning when it inaugurates service, through the
24^th^ month thereafter.

**Additional information concerning Franklin/Oil City**

We are concerned that subsidy level for Franklin/Oil City is high,
especially when viewed in the context of passenger usage. Although we
are selecting Gulfstream to serve the community for a two-year period,
we will monitor traffic after 12 months of full service by Gulfstream,
and, if the subsidy level exceeds the statutory \$200 per passenger cap,
we will take appropriate action. We encourage the community and
Gulfstream to work together to maximize use of the service awarded under
this Order to avoid exceeding the \$200 per passenger cap, which could
result in the termination of eligibility for subsidy under the EAS
program.

**Carrier Fitness**

49 U.S.C. 41737(b) and 41738 require that we find an air carrier fit,
willing, and able to provide reliable service before we may subsidize it
to provide essential air service. Gulfstream has remained under the
Department\'s continuing fitness program, and no information has come to
our attention that would cause us to question the carrier\'s fitness at
this time. The Federal Aviation Administration also states that it knows
of no reasons to question Gulfstream's fitness. We therefore conclude
that the carrier remains fit to conduct the operations proposed here.

Because our decision involves a change in essential air service
carriers, we expect both Air Midwest and Gulfstream to work together to
make a smooth transition. In that regard, before Air Midwest suspends
its service at these communities, we expect it to contact all passengers
holding reservations for travel after the suspension date, to notify
them of the suspension of service, and to secure alternate air
transportation for such passengers or to provide a refund of the ticket
price, without penalty, if requested.

This order is issued under authority delegated in 49 CFR 1.56a(f).

## ACCORDINGLY,

1\. The Department selects Gulfstream International Airlines, Inc. to
provide essential air service at DuBois and Franklin/Oil City,
Pennsylvania, and Greenbrier/White Sulphur Springs/Lewisburg, West
Virginia, and as described in Appendix B, beginning when the carrier
inaugurates service through the 24^th^ month thereafter;

2\. The Department sets the final rate of compensation for Gulfstream
International Airlines, Inc. for the provision of essential air service
at DuBois and Franklin/Oil City, Pennsylvania, and Greenbrier/White
Sulphur Springs/Lewisburg, West Virginia, as described in Appendix B,
payable as follows: for each calendar month during which essential air
service is provided, the amount of compensation shall be subject to the
weekly ceilings set forth in Appendix C, pages 1 through 3, and shall be
determined by multiplying the subsidy-eligible flights completed during
the month[^2] by \$834.41[^3] (DuBois); \$1,013.03[^4] (Franklin/Oil
City); and \$1,701.54[^5] (Greenbrier/White Sulphur Springs/Lewisburg);

3\. The Department directs Gulfstream International Airlines, Inc. to
retain all books, records, and other source and summary documentation to
support claims for payment and to preserve and maintain such
documentation in a manner that readily permits the audit and examination
by representatives of the Department. Such documentation shall be
retained for seven years or until the Department indicates that the
records may be destroyed, whichever is earlier. Copies of flight logs
for aircraft sold or disposed of must be retained. The carrier may
forfeit its compensation for any claim that is not supported under the
terms of this order;

4\. These dockets will remain open until further order of the
Department; and

5\. Dockets Operations will serve copies of this order on community
officials and airport managers of DuBois, Franklin/Oil City, and
Greenbrier/White Sulphur Springs/Lewisburg, West Virginia; Air Midwest,
Inc., and Gulfstream International Airlines, Inc.

By:

> **MICHAEL W. REYNOLDS**
>
> Acting Assistant Secretary for Aviation
>
> and International Affairs

(SEAL)

*An electronic version of this document is available on the World Wide
Web at*

*http://www.regulations.gov*

**AREA MAP**

![](media/image2.wmf)

  ---------------------------- ----------- ---- --- ---------------------- ------------------- -- ----------------------------- ---------------
  **GULFSTREAM INTERNATIONAL                                                                                                    
  AIRLINES**                                                                                                                    

  **Essential Air Service                                                                                                       
  Proposal**                                                                                                                    

  **DuBois and Franklin/Oil                                                                                                     
  City, Pennsylvania;                                                                                                           
  Greenbrier/White Sulphur                                                                                                      
  Springs/Lewisburg, West                                                                                                       
  Virginia**                                                                                                                    

  **Option 2**                                                                                                                  

                                                                                                                                

                                                    [DuBois]{.underline}   [Franklin/Oil          [Greenbrier/Lewisburg/White   **Combined
                                                                           City]{.underline}      Sulphur Springs]{.underline}  Totals**

  Hub Served                                        Cleveland              Cleveland              Cleveland                     

  Number of Roundtrips per                          4                      2                      2                             
  Service Day                                                                                                                   

                                                    (2 nonstop, 2 onestop)                                                      

  **[Operating                                                                                                                  
  Statistics]{.underline}**                                                                                                     

  Completion %                                      97%                    97%                    97%                           97%

  Annual Adjusted Block Hours                       1714.96                907.92                 1748.586667                   4371.47

  Annual Adjusted Departures                        2421.12                1210.56                1311.44                       4,943

  Annual Adjusted ASMs                              4,735,756              2,370,953              6,578,183                     13,684,892

  Annual RPMs                                       2,031,098              1,209,184              2,478,960                     5,719,242

  Projected Load Factor                             42.9%                  51.0%                  37.7%                         41.8%

                                                                                                                                

  **[Revenue                                                                                                                    
  Projections]{.underline}**                                                                                                    

  Enplaned Passengers                               16,276                 6,141                  9,390                         31,807

  Mileage                      (Average as          103                    103                    264                           146
                               Operated)                                                                                        

  Average Fare                                      \$70.38                \$74.44                \$77.97                       \$73.40

  **Passenger Revenue**                             \$ 1,145,505           \$457,141              \$732,138                     \$2,334,784

                                                                                                                                

  **[Expense                                                                                                                    
  Projections]{.underline}**                                                                                                    

  Flight Operations                                 \$261,357              \$138,365              \$266,482                     \$666,204

  Ownership                                         \$240,375              \$127,257              \$245,088                     \$612,720

  Maintenance                                       \$824,051              \$398,336              \$820,728                     \$2,043,115

  Reservations, Stations &                          \$866,478              \$590,105              \$727,541                     \$2,184,124
  Administration                                                                                                                

  Fuel                                              \$817,596              \$344,665              \$852,174                     \$2,014,434

  Marketing                                         \$5,000                \$5,000                \$5,000                       \$15,000

  **Total Annual Expenses**                         \$3,014,857            \$1,603,727            \$2,917,013                   \$7,535,597

                                                                                                                                

  Projected Profit / (Loss)                         (\$1,869,352)          (\$1,146,587)          (\$2,184,875)                 (\$5,200,814)

                                                                                                                                

  Profit Element                                    \$150,743              \$80,186               \$145,851                     \$376,780

                                                                                                                                

  **Annual Subsidy Required**                       \$2,020,095            \$1,226,773            \$2,330,725                   \$5,577,594

                                                                                                                                

  Subsidy per Departure                             \$834.36               \$1,013.39             \$1,777.23                    \$1,128.35

  Subsidy per Passenger                             \$124.11               \$199.77               \$248.21                      \$175.36
  ---------------------------- ----------- ---- --- ---------------------- ------------------- -- ----------------------------- ---------------

Gulfstream International Airlines, Inc

Essential Air Service To Be Provided at DuBois, Pennsylvania

+----------------------+-----------------------------------------------+
| [Effective           | Inauguration of service through the 24^th^    |
| Period]{.underline}: | month thereafter.                             |
+----------------------+-----------------------------------------------+
| [Scheduled           | 12 nonstop round trips and 12 one-stop round  |
| S                    | trips to Cleveland each week. Service may be  |
| ervice]{.underline}: | routed via Franklin/Oil City.                 |
+----------------------+-----------------------------------------------+
| [Aircraft            | Beech 1900 (19 passenger seats).              |
| type:]{.underline}   |                                               |
+----------------------+-----------------------------------------------+
| [Timing of           | Flights must be well-timed and well-spaced in |
| f                    | order to ensure full compensation.            |
| lights:]{.underline} |                                               |
+----------------------+-----------------------------------------------+
| [Annual              | \$2,020,095.                                  |
| compen               |                                               |
| sation:]{.underline} | This rate assumes an annual completion factor |
|                      | of 97 percent. A compensation ceiling is to   |
|                      | be applied per calendar week such that        |
|                      | service above that ceiling in one week cannot |
|                      | make up for service shortfalls in another     |
|                      | week.                                         |
+----------------------+-----------------------------------------------+
| [Subsidy Rate per    | \$834.41[^6]                                  |
| Flight]{.underline}: |                                               |
+----------------------+-----------------------------------------------+
| [Weekly Compensation | \$40,051.68[^7]                               |
| C                    |                                               |
| eiling:]{.underline} |                                               |
+----------------------+-----------------------------------------------+

Note:

The carrier understands that it may forfeit its compensation for any
flights that it does not operate in conformance with the terms and
stipulations of the rate order, including the service plan outlined in
the order and any other significant elements of the required service,
without prior approval. The carrier understands that an aircraft
take-off and landing at its scheduled destination constitutes a
completed flight; absent an explanation supporting subsidy eligibility
for a flight that has not been completed, such as certain weather
cancellations, only completed flights are considered eligible for
subsidy. In addition, if the carrier does not schedule or operate its
flights in full conformance with this order for a significant period, it
may jeopardize its entire subsidy claim for the period in question. If
the carrier contemplates any such changes beyond the scope of the order
during the applicable period of these rates, it must first notify the
Office of Aviation Analysis in writing and receive written approval from
the Department to be assured of full compensation. Should circumstances
warrant, the Department may locate and select a replacement carrier to
provide service on these routes. The carrier must complete all flights
that can be safely operated; flights that overfly points for lack of
traffic will not be compensated. In determining whether subsidy payment
for a deviating flight should be adjusted or disallowed, the Department
will consider the extent to which the goals of the program are met and
the extent of access to the national air transportation system provided
to the community.

If the Department unilaterally, either partially or completely,
terminates or reduces payments for service or changes service
requirements at a specific location provided for under this order, then,
at the end of the period for which the Department does make payments in
the agreed amounts or at the agreed service levels, the carrier may
cease to provide service to that specific location without regard to any
requirement for notice of such cessation. Those adjustments in the
levels of subsidy and/or service that are mutually agreed to in writing
by the parities to the agreement do not constitute a total or partial
reduction or cessation of payment.

Funds are not presently available for performance under this Order
beyond September 30, 2008. The Government\'s obligation for performance
under this Order beyond September 30, 2008, is contingent upon the
availability of appropriated funds from which payment for services can
be made. No legal liability on the part of the Government for any
payment may arise for performance under this Order beyond September 30,
2008, until funds are made available to the Department for performance.
If funds are not made available for performance beyond
September 30, 2008, the carrier will receive notice in writing by the
Department.

Subsidy contracts are subject to, and incorporate by reference, relevant
statutes and Department regulations, as they may be amended from time to
time. However, any such statutes, regulations, or amendments thereto
shall not operate to controvert the foregoing paragraph.

All claims for payment must be submitted within 60 days of the last day
of service provided under this order.

Gulfstream International Airlines, Inc.

Essential Air Service To Be Provided at Franklin/Oil City, Pennsylvania

+----------------------+-----------------------------------------------+
| [Effective           | Inauguration of service through the 24^th^    |
| Period]{.underline}: | month thereafter.                             |
+----------------------+-----------------------------------------------+
| [Scheduled           | 12weekly nonstop round trips to Cleveland     |
| S                    |                                               |
| ervice]{.underline}: |                                               |
+----------------------+-----------------------------------------------+
| [Aircraft            | Beech 1900 (19 passenger seats).              |
| type:]{.underline}   |                                               |
+----------------------+-----------------------------------------------+
| [Timing of           | Flights must be well-timed and well-spaced in |
| f                    | order to ensure full compensation.            |
| lights:]{.underline} |                                               |
+----------------------+-----------------------------------------------+
| [Annual              | \$1,226,773.                                  |
| compen               |                                               |
| sation:]{.underline} | This rate assumes an annual completion factor |
|                      | of 97 percent. A compensation ceiling is to   |
|                      | be applied per calendar week such that        |
|                      | service above that ceiling in one week cannot |
|                      | make up for service shortfalls in another     |
|                      | week.                                         |
+----------------------+-----------------------------------------------+
| [Subsidy Rate per    | \$1,013.03[^8]                                |
| Flight]{.underline}: |                                               |
+----------------------+-----------------------------------------------+
| [Weekly Compensation | \$24,312.72[^9]                               |
| C                    |                                               |
| eiling:]{.underline} |                                               |
+----------------------+-----------------------------------------------+

Note:

The carrier understands that it may forfeit its compensation for any
flights that it does not operate in conformance with the terms and
stipulations of the rate order, including the service plan outlined in
the order and any other significant elements of the required service,
without prior approval. The carrier understands that an aircraft
take-off and landing at its scheduled destination constitutes a
completed flight; absent an explanation supporting subsidy eligibility
for a flight that has not been completed, such as certain weather
cancellations, only completed flights are considered eligible for
subsidy. In addition, if the carrier does not schedule or operate its
flights in full conformance with this order for a significant period, it
may jeopardize its entire subsidy claim for the period in question. If
the carrier contemplates any such changes beyond the scope of the order
during the applicable period of these rates, it must first notify the
Office of Aviation Analysis in writing and receive written approval from
the Department to be assured of full compensation. Should circumstances
warrant, the Department may locate and select a replacement carrier to
provide service on these routes. The carrier must complete all flights
that can be safely operated; flights that overfly points for lack of
traffic will not be compensated. In determining whether subsidy payment
for a deviating flight should be adjusted or disallowed, the Department
will consider the extent to which the goals of the program are met and
the extent of access to the national air transportation system provided
to the community.

If the Department unilaterally, either partially or completely,
terminates or reduces payments for service or changes service
requirements at a specific location provided for under this order, then,
at the end of the period for which the Department does make payments in
the agreed amounts or at the agreed service levels, the carrier may
cease to provide service to that specific location without regard to any
requirement for notice of such cessation. Those adjustments in the
levels of subsidy and/or service that are mutually agreed to in writing
by the parities to the agreement do not constitute a total or partial
reduction or cessation of payment.

Funds are not presently available for performance under this Order
beyond September 30, 2008. The Government\'s obligation for performance
under this Order beyond September 30, 2008, is contingent upon the
availability of appropriated funds from which payment for services can
be made. No legal liability on the part of the Government for any
payment may arise for performance under this Order beyond September 30,
2008, until funds are made available to the Department for performance.
If funds are not made available for performance beyond
September 30, 2008, the carrier will receive notice in writing by the
Department.

Subsidy contracts are subject to, and incorporate by reference, relevant
statutes and Department regulations, as they may be amended from time to
time. However, any such statutes, regulations, or amendments thereto
shall not operate to controvert the foregoing paragraph.

All claims for payment must be submitted within 60 days of the last day
of service provided under this order.

Gulfstream International Airlines, Inc

Essential Air Service To Be Provided at

Greenbrier/White Sulphur Springs/Lewisburg, West Virginia

+----------------------+-----------------------------------------------+
| [Effective           | Inauguration of service through the 24^th^    |
| Period]{.underline}: | month thereafter.                             |
+----------------------+-----------------------------------------------+
| [Scheduled           | 13 nonstop round trips to Cleveland each week |
| S                    |                                               |
| ervice]{.underline}: |                                               |
+----------------------+-----------------------------------------------+
| [Aircraft            | Beech 1900 (19 passenger seats).              |
| type:]{.underline}   |                                               |
+----------------------+-----------------------------------------------+
| [Timing of           | Flights must be well-timed and well-spaced in |
| f                    | order to ensure full compensation.            |
| lights:]{.underline} |                                               |
+----------------------+-----------------------------------------------+
| [Annual              | \$2,330,725.                                  |
| compen               |                                               |
| sation:]{.underline} | This rate assumes an annual completion factor |
|                      | of 97 percent. A compensation ceiling is to   |
|                      | be applied per calendar week such that        |
|                      | service above that ceiling in one week cannot |
|                      | make up for service shortfalls in another     |
|                      | week.                                         |
+----------------------+-----------------------------------------------+
| [Subsidy Rate per    | \$1,777.82[^10]                               |
| Flight]{.underline}: |                                               |
+----------------------+-----------------------------------------------+
| [Weekly Compensation | \$46,223.32[^11]                              |
| C                    |                                               |
| eiling:]{.underline} |                                               |
+----------------------+-----------------------------------------------+

Note:

The carrier understands that it may forfeit its compensation for any
flights that it does not operate in conformance with the terms and
stipulations of the rate order, including the service plan outlined in
the order and any other significant elements of the required service,
without prior approval. The carrier understands that an aircraft
take-off and landing at its scheduled destination constitutes a
completed flight; absent an explanation supporting subsidy eligibility
for a flight that has not been completed, such as certain weather
cancellations, only completed flights are considered eligible for
subsidy. In addition, if the carrier does not schedule or operate its
flights in full conformance with this order for a significant period, it
may jeopardize its entire subsidy claim for the period in question. If
the carrier contemplates any such changes beyond the scope of the order
during the applicable period of these rates, it must first notify the
Office of Aviation Analysis in writing and receive written approval from
the Department to be assured of full compensation. Should circumstances
warrant, the Department may locate and select a replacement carrier to
provide service on these routes. The carrier must complete all flights
that can be safely operated; flights that overfly points for lack of
traffic will not be compensated. In determining whether subsidy payment
for a deviating flight should be adjusted or disallowed, the Department
will consider the extent to which the goals of the program are met and
the extent of access to the national air transportation system provided
to the community.

If the Department unilaterally, either partially or completely,
terminates or reduces payments for service or changes service
requirements at a specific location provided for under this order, then,
at the end of the period for which the Department does make payments in
the agreed amounts or at the agreed service levels, the carrier may
cease to provide service to that specific location without regard to any
requirement for notice of such cessation. Those adjustments in the
levels of subsidy and/or service that are mutually agreed to in writing
by the parities to the agreement do not constitute a total or partial
reduction or cessation of payment.

Funds are not presently available for performance under this Order
beyond September 30, 2008. The Government\'s obligation for performance
under this Order beyond September 30, 2008, is contingent upon the
availability of appropriated funds from which payment for services can
be made. No legal liability on the part of the Government for any
payment may arise for performance under this Order beyond September 30,
2008, until funds are made available to the Department for performance.
If funds are not made available for performance beyond
September 30, 2008, the carrier will receive notice in writing by the
Department.

Subsidy contracts are subject to, and incorporate by reference, relevant
statutes and Department regulations, as they may be amended from time to
time. However, any such statutes, regulations, or amendments thereto
shall not operate to controvert the foregoing paragraph.

All claims for payment must be submitted within 60 days of the last day
of service provided under this order.

[^1]: We are currently dealing with Athens in a separate Order.

[^2]: Subsidy-eligible departures are defined as each arrival from and
    departure to the hub from the essential air service community.

[^3]: See Appendix C, page 1, for calculations.

[^4]: See Appendix C, page 2, for calculations.

[^5]: See Appendix C, page 3, for calculations.

[^6]: \$2,020,095 divided by 2,421 annual departures (48 weekly flights
    x 52 weeks x 97 percent completion).

[^7]: 48 arrivals and departures per week multiplied by \$834.41 per
    flight.

[^8]: \$1,226,773 divided by 1,211 annual departures (24 arrivals and
    departures per week x 52 weeks x 97 percent completion).

[^9]: 24 arrivals and departures per week multiplied by \$1,013.03 per
    flight.

[^10]: \$2,330,725 divided by 1,311 annual departures (13 weekly flights
    x 52 weeks x 97 percent completion).

[^11]: 26 arrivals and departures per week multiplied by \$1,777.82 per
    flight.