Order 2008-2-2

Served: February 6, 2008

**UNITED STATES OF AMERICA**

**DEPARTMENT OF TRANSPORTATION**

**OFFICE OF THE SECRETARY**

**WASHINGTON, D.C.**

> ![](media/image1.wmf){width="0.9166666666666666in"
> height="0.9472222222222222in"} Issued by the Department of
> Transportation
>
> on the 1^st^ day of February, 2008

**ORDER PROHIBITING TERMINATION OF SERVICE**

**AND REQUESTING PROPOSALS**

**Summary**

By this order, the Department is (a) prohibiting Air Midwest from
terminating its subsidized service at the nine, above-captioned
communities for 30 days beyond the end of its 90-day notice period, and
(b) requesting long-term proposals from carriers interested in providing
essential air service (EAS) at any or all of the communities, with or
without subsidy, by February 29. (See Appendix A for a map.)

# Background {#background .paraheading}

Air Midwest was selected to provide EAS at these communities by a series
of orders.[^1]

On January 22, 2008, Air Midwest filed 90-day notices with the
Department of its intent to terminate its subsidized service at all nine
of the above-captioned communities, plus Manhattan and Salina,
Kansas,[^2] effective April 21, 2008. Air Midwest's parent company, Mesa
Air Group, Inc. in its 4Q2007 Revenue and Earnings statement, said that
it has incurred "significant losses (at Air Midwest)," and "with little
prospect of future profitability we have reluctantly begun to liquidate
those assets and operations."

All of Air Midwest's service is provided with 19-seat Beech 1900s, and
is nonstop to the hub unless otherwise noted in the table below. The
currently authorized service patterns and annual subsidy at each
community are as follows:

  --------------- -------------------------------- ---------- ------------- --------------
  **Community**   **Hub**                          **Total    **Annual      **Expiration
                                                   Weekly     subsidy**     date**
                                                   round                    
                                                   trips**                  

  Grand Island    Omaha (12)/Kansas City (6)       18         \$1,148,231   10/31/2008

  McCook          Omaha (1-stop via Grand Island)  12         \$1,148,231   10/31/2008

  El Dorado       Dallas                           12         \$937,385     3/31/2009

  Harrison        Dallas (1-stop via Hot Springs)  18         \$1,406,078   3/31/2009
                  (13)/Kansas City (5)                                      

  Hot Springs     Dallas                           13         \$1,015,500   3/31/2009

  Jonesboro       Dallas (1-stop via El Dorado)    12         \$937,385     3/31/2009

  Columbia        Kansas City                      24         \$598,751     10/31/2008

  Joplin          Kansas City                      18         \$849,757     7/31/2008

  Kirksville      Kansas City                      12         \$627,100     11/30/2008
  --------------- -------------------------------- ---------- ------------- --------------

# Decision {#decision .paraheading}

Because Air Midwest's proposed termination of service would leave all
nine communities without any scheduled air service, we must prohibit the
carrier from terminating such service at the end of its 90-say notice
period and request proposals for replacement service. We will also
require it to maintain service at the communities for an initial 30-day
period after the original 90-day notice period consisting of the service
patterns contained in the current contracts. Furthermore, we will
require Air Midwest to continue to maintain service at the communities
for successive 30-day periods until we have completed processing the
carrier replacement case and the new carrier(s) has actually started
service.

# Request for Proposals {#request-for-proposals .paraheading}

Carriers interested in filing proposals, with or without subsidy
requests, should file them no later than February 29, 2008. At the end
of that period, our staff will docket the proposals, thereby making them
public, and direct each carrier to serve a copy of its proposal on the
civic parties and other applicants. Shortly afterwards, we will provide
a summary of the proposals to the communities and ask them to submit
their final comments. We will give full consideration to all proposals
that are timely filed.[^3]

Interested carriers should prepare their proposals with every
expectation that their initial proposals will represent their *final*
and *only* proposals. However, we retain the discretion to negotiate
proposals with carriers when we deem it desirable; in such cases, of
course, we will give all applicants the same opportunity. We also retain
the discretion to reject outright all unreasonable or unrealistic
proposals and re-solicit a new round of proposals. However, negotiation
or rejection are only occasional exceptions to the rule.

We are here providing interested carriers with some basic information to
serve as guidance when they prepare their proposals, but we will not
prescribe a precise format for their proposals. We expect proposals to
adequately describe the service being proposed and the annual amount of
subsidy being requested. The applicants can make their own judgments as
to the level of detail they wish to present; however, they might want to
include proposed schedules as well as supporting data for their subsidy
requests, such as projected block hours, revenues and expenses. We
strongly encourage clear, well-documented proposals that will facilitate
their evaluation by the affected communities and the Department.[^4]

With respect to each community, we expect proposals consisting of
service with 15-seat or larger aircraft to a suitable hub airport, with
airline connections to the national air transportation system. Service
levels should be comparable to those in the table on page 2 and in
Appendix D. Grand Island has specifically requested that we solicit
stand-alone service (not connected with another city) to Kansas City (18
weekly round trips) or a combination of Kansas City (12 weekly round
trips) and Denver (6 weekly round trips) service. Communities and air
carriers are encouraged to work together in advance of the due date for
proposals to craft a service pattern that is desirable to the community
and meets the operational needs of the airline interested in submitting
a proposal. In addition, carriers should be very clear as to whether a
specific community's proposal is on a stand-alone basis, or whether it
is part of a larger, inseparable package with other communities.

We encourage proposals that meet these requirements in an efficient
manner. Carriers are also welcome to propose more than one service
option, if they choose; they need not limit themselves to those
requirements if they envision other, potentially more attractive service
possibilities \-- different hubs, for example \-- with subsidy
requirements that remain competitive.

# Service and Traffic History {#service-and-traffic-history .paraheading}

In order to assist interested carriers in developing traffic and revenue
projections for their service proposals, we have summarized some
historical origin-destination traffic in Appendix B. For the most recent
12-month period, ending September 30, 2007, enplaned passengers per day
were as follows[^5]: Grand Island, 21.9, McCook, 8.9, El Dorado/Camden,
5.5, Harrison, 14.8, Hot Springs, 11.2, Jonesboro, 9.9,
Columbia/Jefferson City, 27.5, Joplin, 45.7, and Kirksville, 6.4.

#  {#section .paraheading}

# Other Carrier Requirements {#other-carrier-requirements .paraheading}

The Department is responsible for implementing various Federal statutes
governing lobbying activities, drug-free workplaces, and
nondiscrimination.[^6] Consequently, all carriers receiving Federal
subsidy for essential air service must certify that they are in
compliance with Department regulations regarding drug-free workplaces
and nondiscrimination, and those carriers whose subsidies exceed
\$100,000 over the life of the rate term must also certify that they are
in compliance with the regulations governing lobbying activities.
Because the Department is prohibited from paying subsidy to carriers
that do not submit these documents, all carriers that plan to submit
proposals involving subsidy should be aware that the selected carrier
will be required to complete the required certifications. Interested
carriers requiring more detailed information regarding these
requirements should contact the Office of Aviation Analysis at
(202) 366-5903.[^7]

# Community and State Comments {#community-and-state-comments .paraheading}

The communities and states are welcome to submit comments at any time.
As noted above, we encourage prospective applicants to contact the
communities before they submit their proposals so that they can tailor
them to the communities' needs, as they will not be able to amend them
after the due date. As noted earlier, we will provide a copy of the
proposals to the civic parties and ask them to submit their final
comments shortly after February 29, the due date for carrier proposals.

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

**ACCORDINGLY,**

1\. We prohibit Air Midwest, Inc. from suspending service at Grand
Island and McCook, Nebraska, El Dorado/Camden, Harrison, Hot Springs,
and Jonesboro, Arkansas, Columbia/Jefferson City, Joplin, and
Kirksville, Missouri, at the end of its 90-day notice period, and
require it to maintain service at the communities, as set forth in
Appendix D, for an initial 30-day period through May 21, 2008, or until
a carrier capable of providing reliable essential air service actually
begins service, whichever is first;[^8]

2\. We direct Air Midwest, Inc., to retain all books and other source
and summary documentation to support claims for payment, and to preserve
and maintain such documentation in a manner that readily permits its
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 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;

3\. We request that carriers interested in providing essential air
service at Grand Island and McCook, Nebraska, El Dorado/Camden,
Harrison, Hot Springs, and Jonesboro, Arkansas, Columbia/Jefferson City,
Joplin, and Kirksville, Missouri, submit their proposals, with or
without subsidy requests, no later than February 29, 2008. The proposals
should be sent to the EAS & Domestic Analysis Division, X-53, Office of
Aviation Analysis, U.S. Department of Transportation, 1200 New Jersey
Avenue S.E., Washington, D.C. 20590, with the title "Proposal to Provide
Essential Air Service at (community or communities of interest)," with
the docket number corresponding to each community as shown on the first
page of this order;[^9]

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

5\. We will serve copies of this order on the communities and airport
managers of Grand Island and McCook, Nebraska, El Dorado/Camden,
Harrison, Hot Springs, and Jonesboro, Arkansas, Columbia/Jefferson City,
Joplin, and Kirksville, Missouri; and the parties listed in Appendix E.

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](http://www.regulations.gov/)

**AREA MAP**

![](media/image2.wmf)

**Traffic History\***

  -------------------- -------------------- -- ---------------------- --------------------------- --------------------- ------- ---------------------- --------------------------- ---------------------
  [Year]{.underline}   [Qtr.]{.underline}      [Origin]{.underline}   [Destination]{.underline}   [Total]{.underline}           [Origin]{.underline}   [Destination]{.underline}   [Total]{.underline}

                                                                                                                                                                                   

                                               **Columbia/Jefferson                                                             **Harrison, AR**                                   
                                               City, MO**                                                                                                                          

  2004                 4                       5,033                  4,863                       9,896                         879                    861                         1,740

  2005                 1                       4,532                  4,468                       9,000                         740                    742                         1,482

  2005                 2                       5,390                  5,219                       10,609                        1,025                  1,006                       2,031

  [2005]{.underline}   [3]{.underline}         [4,875]{.underline}    [4,813]{.underline}         [9,688]{.underline}           [1,010]{.underline}    [1,014]{.underline}         [2,024]{.underline}

  Total                                        19,830                 19,363                      39,193                        3,654                  3,623                       7,277

                                                                                                                                                                                   

  2005                 4                       5,160                  4,917                       10,077                        1,055                  1,058                       2,113

  2006                 1                       4,066                  3,952                       8,018                         932                    899                         1,831

  2006                 2                       3,828                  3,731                       7,559                         1,356                  1,263                       2,619

  [2006]{.underline}   [3]{.underline}         [3,242]{.underline}    [3,238]{.underline}         [6,480]{.underline}           [1,271]{.underline}    [1,155]{.underline}         [2,426]{.underline}

  Total                                        16,296                 15,838                      32,134                        4,614                  4,375                       8,989

                                                                                                                                                                                   

  2006                 4                       2,479                  2,089                       4,568                         1,131                  1,118                       2,249

  2007                 1                       2,015                  1,823                       3,838                         921                    904                         1,825

  2007                 2                       2,290                  2,190                       4,480                         1,283                  1,177                       2,460

  [2007]{.underline}   [3]{.underline}         [2,100]{.underline}    [2,199]{.underline}         [4,299]{.underline}           [1,418]{.underline}    [1,340]{.underline}         [2,758]{.underline}

  Total                                        8,884                  8,301                       17,185                        4,753                  4,539                       9,292

                                                                                                                                                                                   

                                               **El Dorado/Camden,                                                              **Hot Springs, AR**                                
                                               AR**                                                                                                                                

  2004                 4                       554                    525                         1,079                         867                    803                         1,670

  2005                 1                       493                    471                         964                           735                    835                         1,570

  2005                 2                       527                    509                         1,036                         774                    800                         1,574

  [2005]{.underline}   [3]{.underline}         [577]{.underline}      [578]{.underline}           [1,155]{.underline}           [807]{.underline}      [804]{.underline}           [1,611]{.underline}

  Total                                        2,151                  2,083                       4,234                         3,183                  3,242                       6,425

                                                                                                                                                                                   

  2005                 4                       537                    537                         1,074                         884                    852                         1,736

  2006                 1                       468                    443                         911                           882                    901                         1,783

  2006                 2                       479                    484                         963                           1,067                  1,074                       2,141

  [2006]{.underline}   [3]{.underline}         [485]{.underline}      [434]{.underline}           [919]{.underline}             [1,037]{.underline}    [958]{.underline}           [1,995]{.underline}

  Total                                        1,969                  1,898                       3,867                         3,870                  3,785                       7,655

                                                                                                                                                                                   

  2006                 4                       507                    449                         956                           858                    808                         1,666

  2007                 1                       374                    368                         742                           773                    811                         1,584

  2007                 2                       440                    423                         863                           938                    948                         1,886

  [2007]{.underline}   [3]{.underline}         [452]{.underline}      [401]{.underline}           [853]{.underline}             [919]{.underline}      [957]{.underline}           [1,876]{.underline}

  Total                                        1,773                  1,641                       3,414                         3,488                  3,524                       7,012
  -------------------- -------------------- -- ---------------------- --------------------------- --------------------- ------- ---------------------- --------------------------- ---------------------

  -----------------------------------------------------------------------
  **Note - Columbia/Jefferson City:** Air Midwest replaced TransStates in
  October 2006

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

\*Source -- T-100 Market Report, Passengers in Scheduled Passenger
Service

**Traffic History**

**(continued)**

  -------------------- ----------------- --- --------------------- --------------------- --------------------- ------- ------------------- ------------------- ---------------------
                                             **Grand Island, NE**                                                      **Jonesboro, AR**                       

  2004                 4                     1,745                 1,790                 3,535                         576                 534                 1,110

  2005                 1                     1,461                 1,524                 2,985                         608                 584                 1,192

  2005                 2                     1,492                 1,521                 3,013                         759                 749                 1,508

  [2005]{.underline}   [3]{.underline}       [1,544]{.underline}   [1,523]{.underline}   [3,067]{.underline}           [719]{.underline}   [714]{.underline}   [1,433]{.underline}

  Total                                      6,242                 6,358                 12,600                        2,662               2,581               5,243

                                                                                                                                                               

  2005                 4                     1,647                 1,686                 3,333                         792                 747                 1,539

  2006                 1                     1,723                 1,745                 3,468                         722                 728                 1,450

  2006                 2                     2,055                 2,057                 4,112                         832                 869                 1,701

  [2006]{.underline}   [3]{.underline}       [1,961]{.underline}   [2,082]{.underline}   [4,043]{.underline}           [843]{.underline}   [789]{.underline}   [1,632]{.underline}

  Total                                      7,386                 7,570                 14,956                        3,189               3,133               6,322

                                                                                                                                                               

  2006                 4                     1,601                 1,537                 3,138                         813                 782                 1,595

  2007                 1                     1,521                 1,445                 2,966                         690                 671                 1,361

  2007                 2                     1,765                 1,649                 3,414                         757                 725                 1,482

  [2007]{.underline}   [3]{.underline}       [2,131]{.underline}   [2,061]{.underline}   [4,192]{.underline}           [899]{.underline}   [881]{.underline}   [1,780]{.underline}

  Total                                      7,018                 6,692                 13,710                        3,159               3,059               6,218

                                                                                                                                                               

                                                                                                                                                               

                                                                                                                                                               

                                             **Joplin, MO**                                                            **McCook, NE**                          

  2004                 4                     2,573                 2,486                 5,059                         461                 448                 909

  2005                 1                     2,192                 2,060                 4,252                         538                 497                 1,035

  2005                 2                     2,558                 2,475                 5,033                         543                 503                 1,046

  [2005]{.underline}   [3]{.underline}       [2,568]{.underline}   [2,460]{.underline}   [5,028]{.underline}           [544]{.underline}   [525]{.underline}   [1,069]{.underline}

  Total                                      9,891                 9,481                 19,372                        2,086               1,973               4,059

                                                                                                                                                               

  2005                 4                     2,638                 2,547                 5,185                         662                 642                 1,304

  2006                 1                     2,338                 2,326                 4,664                         576                 579                 1,155

  2006                 2                     2,500                 2,443                 4,943                         634                 619                 1,253

  [2006]{.underline}   [3]{.underline}       [2,809]{.underline}   [2,719]{.underline}   [5,528]{.underline}           [620]{.underline}   [608]{.underline}   [1,228]{.underline}

  Total                                      10,285                10,035                20,320                        2,492               2,448               4,940

                                                                                                                                                               

  2006                 4                     3,558                 3,271                 6,829                         616                 609                 1,225

  2007                 1                     3,177                 2,989                 6,166                         659                 564                 1,223

  2007                 2                     3,618                 3,466                 7,084                         794                 746                 1,540

  [2007]{.underline}   [3]{.underline}       [4,439]{.underline}   [4,092]{.underline}   [8,531]{.underline}           [810]{.underline}   [785]{.underline}   [1,595]{.underline}

  Total                                      14,792                13,818                28,610                        2,879               2,704               5,583
  -------------------- ----------------- --- --------------------- --------------------- --------------------- ------- ------------------- ------------------- ---------------------

**Notes:**

  ------------- --------- --------- -------------------------------------------
  **Grand                           
  Island:** Air                     
  Midwest                           
  replaced                          
  Great Lakes                       
  in October                        
  2006.                             

                                    

  **Joplin:**                       
  Air Midwest                       
  replaced                          
  TransStates                       
  in August                         
  2006.                             

                                    

  **McCook:**                       
  Air Midwest                       
  replaced                          
  Great Lakes                       
  in October                        
  2006.                             

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

**Traffic History**

**(continued)**

  -------------------- ----------------- --- ------------------- ------------------- ------------------- ------- ------- ------- ------- -------
                                             **Kirksville, MO**                                                                          

  2004                 4                     448                 449                 897                                                 

  2005                 1                     278                 271                 549                                                 

  2005                 2                     301                 349                 650                                                 

  [2005]{.underline}   [3]{.underline}       [385]{.underline}   [335]{.underline}   [720]{.underline}                                   

  Total                                      1,412               1,404               2,816                                               

                                                                                                                                         

  2005                 4                     499                 449                 948                                                 

  2006                 1                     380                 392                 772                                                 

  2006                 2                     436                 389                 825                                                 

  [2006]{.underline}   [3]{.underline}       [384]{.underline}   [342]{.underline}   [726]{.underline}                                   

  Total                                      1,699               1,572               3,271                                               

                                                                                                                                         

  2006                 4                     635                 470                 1,105                                               

  2007                 1                     485                 461                 946                                                 

  2007                 2                     482                 510                 992                                                 

  [2007]{.underline}   [3]{.underline}       [461]{.underline}   [472]{.underline}   [933]{.underline}                                   

  Total                                      2,063               1,913               3,976                                               

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

                                                                                                                                         

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

**Note - Kirksville:** Air Midwest replaced RegionsAir in November 2006.

[General Terms and Conditions for Essential Air Service]{.underline}

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 plans 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 the 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 ensured 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 the order, then,
at the end of the period for which the Department does make payments in
the stipulated amounts or at the stipulated 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 Department and carrier 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 any rate 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 any rate 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 any rate order.

AIR MIDWEST

ESSENTIAL AIR SERVICE TO BE MAINTAINED

EFFECTIVE PERIOD April 21, 2008, until further Department action

SERVICE

  -------------------- ------------------------------------ ---------------
  **Community**        **Hub/round trips**                  **Total Weekly
                                                            round trips**

  Grand Island         Omaha (12) and Kansas City (6)       18

  McCook               Omaha (1-stop via Grand Island)      12

  El Dorado/Camden     Dallas                               12

  Harrison             Dallas (13) (1-stop via Hot Springs) 18
                       /Kansas City (5)                     

  Hot Springs          Dallas                               13

  Jonesboro            Dallas (1-stop via El Dorado)        12

  Columbia/Jefferson   Kansas City                          24
  City                                                      

  Joplin               Kansas City                          18

  Kirksville           Kansas City                          12
  -------------------- ------------------------------------ ---------------

AIRCRAFT TYPE Beech 1900 (19 seats)

TIMING OF FLIGHTS Flights must be well timed and well spaced to ensure
full compensation

**DISTRIBUTION**

Carl Nelson, American Airlines

Bart Thrasher, US Airways

Arlen Rinkenberger, Bemidji Aviation

Cori Rude, Bemidji Aviation

Craig Denney, Big Sky Airlines

Fred DeLeeuw, Big Sky Airlines

Gordon Long, Boston-Maine Airways

Dan Wolf, Cape Air

J. Flaherty, Cape Air

John Rupert, Caribbean Sun Airlines

Dennis Burnett, Colgan Air

Mike Colgan, Colgan Air

Patti Barth, Colgan Air

Andy Price, Commutair

Joel Raymond, Commutair

Bruce Keiner, Continental Airlines

Dan Weiss, Continental Airlines

Lorry Halloway, Continental Airlines

Dan Shuman, Delta Airlines

Joe Esposito, Delta Airlines

Kate Soled, Executive Airlines

Chuck Howell, Great Lakes Airlines

Doug Voss, Great Lakes Airlines

Thomas P. Cooper, Gulfstream International Airlines

Bruce Tecklenburg, Horizon Air

Pat Zachweija, Horizon Air

Tim Brooks, Kenmore Air

Tim L. McDonald, Northwest Airlines

Tom Bacon, Mesa Airlines

Mickey Bowman, Gulfstream International Airlines

Bob Weil, Mesaba Airlines

John Spanjers, Mesaba Airlines

Anthony Intravia, Midwest Airlines

David Reeve, Midwest Airlines

James Rankin, Midwest Airlines

Jose Maldonado, MN Aviation

Darnea Wod, Multi Aero

Shane Storz, Multi Aero

Bryan Ebensteiner, Northwest Airlines

Mary Schneider, Scenic Airlines

Mitzi Daines, Scenic Airlines

**DISTRIBUTION (continued)**

Jerry Balsano, Shuttle America

Eric Christensen, SkyWest Airlines

Steve Hart, SkyWest Airlines

Bill Mishk, Trans States Airlines

Gerry Wigmore, Trans States Airlines

Alicia Gabriel, United Airlines

James Starnes, United Airlines

Jason Reisinger, US Airways

[^1]: Order 2006-6-26, June 21, 2006, for Grand Island and McCook;
    Order 2007-1-7, January 9, 2007, for El Dorado/Camden, Harrison, Hot
    Springs and Jonesboro; Order 2006-6-21, June 26, 2006, and Order
    2007-5-5, May 14, 2007, both for Columbia/Jefferson City; Order
    2006-5-11, May 17, 2006, for Joplin; and Order 2006-8-19, August 25,
    2006, for Kirksville.

[^2]: We are dealing with EAS at Manhattan and Salina in a separate
    order.

[^3]: Carriers should not expect the Department to accept late filings.
    In cases where a carrier proposes to provide essential air service
    without subsidy and we determine that service can be reliably
    provided without such compensation, we do not proceed with the
    carrier-selection case. Instead, we simply rely on that carrier's
    subsidy-free service as proposed.

[^4]: 49 U.S.C. 41733(c)(1) directs us to consider four factors in
    selecting a carrier to provide subsidized essential air service: (1)
    service reliability; (2) contractual and marketing arrangements with
    a larger carrier at the hub; (3) interline arrangements with a
    larger carrier at the hub; and (4) community views. In addition, the
    Transportation, Treasury, Housing and Urban Development, the
    Judiciary, the District of Columbia, and Independent Agencies
    Appropriations Act, 2006, Public Law 109-115, states that when
    selecting a carrier to provide essential air service, the Department
    may consider the carriers' relative subsidy requirements, thus
    codifying a factor that we have considered since the inception of
    the program. Interested carriers should also be aware that our
    general provisions governing essential air service will be included
    in the selection order as part of our authorization of subsidy for
    the selected service. Appendix C of this order contains those
    general provisions.

[^5]: ^Enplaned\ passengers\ per\ day\ calculated\ by\ adding\ enplanement\ and\ deplanements\ totals\ from\ Appendix\ B,\ for\ 4Q2006,\ 1Q2007,\ 2Q2007,\ and\ 3Q2007,\ then\ dividing\ by\ 313\ (days),\ then\ dividing\ by\ 2.^

[^6]: The regulations applicable to these areas are: (1) 49 CFR Part 20
    \-- New restrictions on lobbying;

    \(2\) 49 CFR Part 21 \-- Nondiscrimination in federally-assisted
    programs of the Department of Transportation \-- Effectuation of
    title VI of the Civil Rights Act of 1964; 49 CFR Part 27
    \--Nondiscrimination on the basis of disability in programs and
    activities receiving or benefiting from Federal financial
    assistance; and 14 CFR Part 382 \-- Nondiscrimination on the basis
    of disability in air travel; and (3) 49 CFR Part 29 \--
    Government-wide debarment and suspension (non-procurement) and
    government-wide requirements for drug-free workplace (grants).

[^7]: The certifications are also available on the web at
    http://ostpxweb.dot.gov/aviation/index.html.

[^8]: In accordance with 49 U.S.C. 41734(c), we will extend Air
    Midwest's service obligation for successive 30-day periods as
    necessary until replacement service actually begins.

[^9]: Questions regarding filings in response to this order may be
    directed to Kevin Schlemmer (Grand Island and McCook) at (202)
    366-3176; Mike Waters (Joplin, and Kirksville) at (202) 366-6494;
    and Ed Niederberger (El Dorado/Camden, Harrison, Hot Springs,
    Jonesboro, and Columbia/Jefferson City) at (202) 366-1039. Proposals
    should be e-mailed to the same EAS staff members
    (<kevin.schlemmer@dot.gov>, <ed.niederberger@dot.gov>, and
    <mike.waters@dot.gov> ) and to <dennis.devany@dot.gov>, or faxed to
    their attention at: (202) 366-7638.