Order 2012-10-8

Served: October 4, 2012

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 4th of October, 2012

Essential Air Service at

Fort Dodge, Iowa

Mason City, Iowa

Sioux City, Iowa

Waterloo, Iowa

Bemidji, Minnesota

Brainerd, Minnesota

Chisholm/Hibbing, Minnesota

International Falls, Minnesota 

Thief River Falls, Minnesota

Devils Lake, North Dakota

Jamestown, North Dakota

Aberdeen, South Dakota

Pierre, South Dakota

Watertown, South Dakota

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

Docket DOT-OST-2001-10682

Docket DOT-OST-2001-10684

Docket DOT-OST-2011-0131

Docket DOT-OST-2011-0132

Docket DOT-OST-2011-0134

Docket DOT-OST-2011-0135

Docket DOT-OST-2003-15796

Docket DOT-OST-2009-0304

Docket DOT-OST-2001-10642

Docket DOT-OST-1997-2785

Docket DOT-OST-1997-2785

Docket DOT-OST-2011-0137

Docket DOT-OST-2011-0138

Docket DOT-OST-2001-10644

ORDER SETTING FINAL RATES

On July 15, 2011, Pinnacle Airlines Corporation and Mesaba Aviation, Inc., d/b/a Delta 

Connection (Delta),1 filed 90-day notices of intent to suspend their subsidized Essential Air 

Service (EAS) at the 14 above-captioned communities, effective October 13, 2011.2 By 

 

1 The notices were filed by Pinnacle’s two wholly-owned subsidiaries, Mesaba Aviation, Inc., and Pinnacle Airlines, 

both doing business as Delta Connection. The code-share parent, Delta Air Lines, Inc., volunteered to take on this 

EAS obligation itself, rather than Pinnacle or Mesaba. Delta Air Lines indicated that it would meet that obligation by 

requiring various code share partners, including Pinnacle, Atlantic Southeast, SkyWest, Mesaba, or Chautauqua, to 

provide the service, depending on availability of aircraft and other considerations. This would afford Delta Air Lines 

the maximum flexibility to meet its obligations. Hereafter Delta refers interchangeably to all of the airlines at issue.

2 Delta simultaneously filed notice at 10 other communities, whose past-periods have been resolved: Orders 

2012-1-23, January 26, 2012, Butte; 2012-4-6, April 4, 2012, Greenville, Hattiesburg, Muscle Shoals, and Tupelo; 

2012-4-10, April 6, 2012, Pellston and Sault Ste. Marie; 2012-4-20, April 16, 2012, Alpena, Escanaba, and Iron 

Mountain. This order addresses the past-period and prospective rates at only these 14 communities.
- 2 -

Order 2011-9-5, September 13, 2011, we required Delta to continue to maintain EAS and 

requested proposals at the communities “consistent with the level we are currently subsidizing.” 

That level was 14 round trips per week except at Hibbing, where we had selected Delta to 

provide 19 round trips per week, and at Thief River Falls, where 12 round trips were required. 

By Order 2011-12-25, December 29, 2011, we reduced the required frequency at all of the 

communities to twelve round trips per week, the minimum level of frequency permitted by 

statute, because the 50-seat regional jets Delta had begun providing after it filed notice provided 

significantly more capacity than the 34-seat Saab 340 aircraft specified by the various selection 

Orders shown in the chart below.

The chart below shows, for each community, the selection Order in effect when Delta filed 

notice,3 the subsequent replacement Order selecting a new carrier,4 the eligible rate period,5 the 

level of subsidy Delta requested and what it ultimately agreed to, and finally the difference 

between the two. The chart below sets off Devils Lake/Jamestown and Hibbing/Thief River 

Falls and International Falls from the other communities because service at those five

communities was provided, for at least some time, on a linear basis, while the service above was 

provided on a nonstop basis. 

 

3 Sioux City, Waterloo, Bemidji, Brainerd, Aberdeen, and Pierre were served on a subsidy-free basis, so no order is 

shown.

4 No replacement order is shown at Pierre. Order 2012-1-7, January 10, 2012, indicated that Delta’s eligible period 

would end when Great Lakes began subsidy-free service to Minneapolis, which it did on February 1, 2012. 

Jamestown shows twice in the chart above, because Order 2011-12-6, December 14, 2011, split service at Devils 

Lake from Jamestown, and Order 2012-1-17, January 23, 2012, ultimately selected Great Lakes at Jamestown only. 

Likewise, International Falls shows twice as well.

5 Except for Brainerd and International Falls, replacement service has already begun. Order 2012-9-11, 

September 11, 2012, selected SkyWest to provide subsidized EAS at Brainerd and International Falls, but SkyWest 

has not yet begun that service. Thus the hold-in rate is effective from October 13, 2011, thru “UFN,” meaning until 

further notice, i.e., when SkyWest inaugurates that service.

Estimated Subsidy Based on Historical Regional Jet Operations Only 

Selection Replacement Eligible Period

Community Order Order From Thru Delta Agreed Difference

Fort Dodge 2011-6-7 2011-11-30 1-Nov-11 11-Apr-12 $1,638,627 $1,168,744 $469,883

Mason City 2011-6-7 2011-11-30 1-Nov-11 11-Apr-12 $2,171,684 $1,196,087 $975,597

Sioux City NA 2011-12-2 13-Oct-11 3-Apr-12 $722,123 $343,635 $378,488

Waterloo NA 2011-12-2 13-Oct-11 3-Apr-12 $1,314,736 $591,045 $723,691

Bemidji NA 2012-1-23 13-Oct-11 2-Mar-12 $888,808 $429,364 $459,444

Brainerd NA 2012-9-11 13-Oct-11 14-Dec-12 $2,077,989 $2,070,454 $7,535

International Falls 2010-5-18 2012-9-11 11-Jan-12 4-Sep-12 $987,112 $987,112 $0

Jamestown 2009-8-6 2012-1-17 11-Dec-11 17-Mar-12 $1,374,875 $996,130 $378,745

Aberdeen NA 2012-1-23 13-Oct-11 2-Mar-12 $517,246 $178,137 $339,109

Pierre NA NA 21-Nov-11 31-Jan-12 $523,520 $473,114 $50,406

Watertown 2011-6-6 2011-11-30 1-Nov-11 3-Apr-12 $1,960,373 $1,034,083 $926,290

Devils Lake/ 2009-8-6 2011-12-6 1-Oct-11 10-Dec-11 $242,559 $190,828 $51,731

Jamestown 2009-8-6 2012-1-17 1-Oct-11 10-Dec-11 $242,559 $190,828 $51,731

Hibbing/ 2009-8-8 & 2012-4-10 1-Nov-11 17-May-12 $1,113,102 $1,379,684 -$266,582

Thief River Falls 2010-12-9 2011-11-30 1-Nov-11 17-May-12 $1,113,102 $1,379,684 -$266,582

International Falls 2010-5-18 2012-9-11 5-Sep-12 14-Dec-12 $275,077 $275,077 $0

$4,279,486
- 3 -

All of the rates in the chart above, except for the linear service at Devils Lake and 

Jamestown during the initial period October 11, 2011, through December 10, 2011, 

reflect service with regional jet aircraft. At Brainerd and International Falls, Delta

anticipates it will be replaced on December 15, 2012, and the chart reflects that 

assumption. However, Delta would continue to be compensated at the agreed rates if 

replacement service does not materialize. 

The suspension notices were precipitated by Delta planning to and ultimately disposing

of its fleet of 34-seat Saab 340 aircraft. However, the bulk of the EAS during the periods 

at issue was provided with 50-seat regional jets. In order to simplify matters, Delta and 

the EAS staff agreed to exclude the operations of any Saab 340 aircraft – flights, revenue, 

and expenses -- and to base the subsidy per flight exclusively on the expenses and 

revenue of regional jet operations. The applicable weekly ceilings were then determined 

by multiplying those subsidy rates for regional jets by the ceiling number of flights 

required by Order 2011-9-5 and Order 2011-12-25.6

Several factors drove the subsidy decreases shown in the chart from those which Delta 

first proposed. First, Delta and the EAS staff agreed to base unit costs on those 

previously agreed to at the Memphis hub by Order 2012-4-6, April 4, 2012, increased for 

expenses, such as deicing, to reflect the greater cost of operating during the mostly winter 

months at the upper Midwest communities at issue here.7 In sum, we find that the 

subsidy rates reflected in the Appendices appear reasonable.

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

ACCORDINGLY,

1. We set the final rates for Delta Air Lines, Inc., for meeting its obligation to provide 

EAS at Fort Dodge, Mason City, Sioux City, and Waterloo, Iowa; Bemidji, Brainerd, 

Chisholm/Hibbing, International Falls, and Thief River Falls, Minnesota; Devils Lake 

and Jamestown, North Dakota; and Aberdeen, Pierre, and Watertown, South Dakota, as 

described in Appendices B, C, and D;

2. These rates are in lieu of, and not in addition to, those set by Orders 2009-8-6, 

2009-8-8, 2010-5-18, 2010-12-9, 2011-6-6, and 2011-6-7, and 2012-9-11;

 

6 When Delta bills the Department, it will be able to apply those rates for 50-seat aircraft to any service it 

provided with Saab 340 aircraft, pro-rated on the number of seats, i.e., 34 out of 50.

7 In other words, the agreed unit costs are lower than what Delta originally proposed for these communities 

but higher than it agreed to at Memphis. 
- 4 -

3. We direct Delta Air Lines, Inc., and its code-share partners that actually provided the 

service, 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 from the service date 

of this Order, or until the Department indicates that the records may be destroyed, 

whichever comes first. 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 Department action; and

5. The Department will serve copies of this Order on Mesaba Aviation, Inc., Pinnacle 

Airlines Corporation, and Delta Air Lines, Inc.

By:

Susan Kurland

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
Appendix A

Nonstop Great Circle Miles to MSP Other Distances

Fort Dodge, Iowa, FOD 168 HIB-TVF 163

Mason City, Iowa, MCW 119 DVL-JMS 83

Sioux City, Iowa, SUX 233 INL-HIB 86

Waterloo, Iowa, ALO 166

Bemidji, Minnesota, BJI 199

Brainerd, Minnesota, BRD 114

Hibbing, Minnesota, HIB 174

International Falls, Minnesota, INL 255

Thief River Falls, Minnesota, TVF 261

Devils Lake, North Dakota, DVL 351

Jamestown, North Dakota, JMS 299

Aberdeen, South Dakota, ABR 257

Pierre, South Dakota, PIR 350

Watertown, South Dakota, ATY 193
Appendix B

Page 1 of 11

Essential Air Service Provided at ABR (Aberdeen), ALO (Waterloo), ATY (Watertown), BJI (Bemidji),

FOD (Fort Dodge), JMS (Jamestown), MCW (Mason City), PIR (Pierre), and SUX (Sioux City)

Only Communities with Nonstop Turnaround Service

ABR ALO ATY BJI FOD JMS 2/ MCW PIR SUX

Docket 2011-0137 2011-0132 2001-10644 2011-0134 2001-10682 1997-2785 2001-10684 2011-0138 2011-0131

Nonstop Miles to MSP 257 166 193 199 168 299 119 350 233

Eligible Time Period 10-13-3/2 10/13-4/3 11/1-4/3 10/13-3/2 11/1-4/11 12/11-3/17 11/1-4/11 11/21-1/31 10/13-4/3

Replacement Order 2012-1-23 2011-12-2 2011-11-30 2012-1-23 2011-11-30 2012-1-17 2011-11-30 3/ 2011-12-2

Aircraft Type 1/ CRJ-200 CRJ-200 CRJ-200 CRJ-200 CRJ-200 CRJ-200 CRJ-200 CRJ-200 CRJ-200

Flts, both directions 548 638 415 513 463 333 563 122 635

Blk. Hours 626 567 420 502 467 406 464 153 714

Seats 27,555 29,500 20,750 25,650 23,199 16,649 28,150 6,100 31,905

Pax. 20,711 16,634 6,390 16,260 8,192 4,044 8,188 983 23,839

Imputed Pax. Fare $101.29 $92.73 $82.53 $89.03 $67.48 $105.96 $70.34 $150.94 $96.27

Pax Revenue $2,097,884 $1,542,531 $527,346 $1,447,614 $552,799 $428,495 $575,966 $148,378 $2,294,902

Other Revenue $257,346 $194,566 $64,437 $183,386 $68,001 $52,390 $70,162 $17,805 $287,679

Total Revenue $2,355,230 $1,737,097 $591,783 $1,631,000 $620,800 $480,885 $646,128 $166,183 $2,582,581

Direct Expenses $1,588,544 $1,438,825 $1,065,796 $1,273,880 $1,185,064 $1,030,269 $1,177,451 $466,181 $1,811,854

Indirects $824,186 $778,453 $482,648 $688,371 $519,264 $376,412 $577,039 $142,673 $975,018

Operating Expense $2,412,730 $2,217,278 $1,548,444 $1,962,251 $1,704,328 $1,406,681 $1,754,490 $608,854 $2,786,872

Economic $2,533,367 $2,328,142 $1,625,866 $2,060,364 $1,789,544 $1,477,015 $1,842,215 $639,297 $2,926,216

Subsidy per Above $178,137 $591,045 $1,034,083 $429,364 $1,168,744 $996,130 $1,196,087 $473,114 $343,635

$ per Departure $325.07 $926.40 $2,491.77 $836.97 $2,524.29 $2,991.38 $2,124.49 $3,877.98 $541.16

Weekly Ceiling, 2011 $9,102 $25,939 $69,770 $23,435 $70,680 $83,759 $59,486 $93,072 $15,152

Weekly Ceiling, 2012 $7,802 $22,234 $59,802 $20,087 $60,583 $71,793 $50,988 $93,072 $12,988

1/ Delta, in fact, provided some service with Saab 340 Turboprops, but the operations above only reflect service with Regional Jets.

Eligible service provided with Saab 340s will be billed at 34/50 of the regional jet subsidy rate.

The rates above were devleoped based on Delta's unit costs previously agreed to for the Memphis hold-ins. 

Maintenance costs were increased slightly, and aircraft costs more significantly, to reflect the increased costs of operating during the 

off-peak season in MSP. Delta separately developed subsidy costs for operations with both aircraft types, but after review,

it was agreed that to simplify matters by basing the above rates on the RJ operations, and we determined that would provided a reasonable result.

2/ See Appendix C for the linear service Delta provided on the routing DVL-JMS-MSP from October 1, 2011, through December 10, 2011.

3/ Order 2011-9-5, September 13, 2011, allowed Delta to terminate service. Order 2011-11-14, November 2, 2011, required Delta to reinstate 

service, and order 2012-1-7, January 10, 2012, allowed Delta to terminate service once Great Lakes began Pierre to Minneapolis service.

Note: Unit costs shown above do not apply to Pierre, where the carrier was ordered back into service on an emergency basis.
Appendix B

Page 2 of 11

Subsidy Rate Agreement for the Provision of Essential Air Service by 

Delta Air Lines, Inc., at Aberdeen (ABR), South Dakota, Docket 2011-0137

SERVICE: Nonstop to Minneapolis (MSP)

AIRCRAFT TYPE: CRJ-200, 50 seats

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

compensation. 

October 13, 2011 January 1, 2012

December 31, 2011 March 2, 2012

WEEKLY ROUND TRIPS 14 12

RATE PER CRJ FLIGHT:1 $325 $325

RATE PER SAAB FLIGHT2 $221 $221

WEEKLY CEILING: $9,100 3 $7,800 4

Note: Order 2011-12-25, December 29, 2011, reduced the required frequency from 14 

round trips per week per Order 2011-9-5 to 12, which Delta began providing on 

January 1, 2012.

 1 See Appendix B, page 1 of 11.

2 $325 * 34/50 = $221.

3 $325 * 28 flights per week.

4 $325 * 24 flights per week.
Appendix B

Page 3 of 11

Subsidy Rate Agreement for the Provision of Essential Air Service by 

Delta Air Lines, Inc., at Waterloo (ALO), Iowa, Docket 2011-0132

SERVICE: Nonstop to Minneapolis (MSP)

AIRCRAFT TYPE: CRJ-200, 50 seats

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

compensation. 

October 13, 2011 January 1, 2012

December 31, 2011 April 3, 2012

WEEKLY ROUND TRIPS 14 12

RATE PER CRJ FLIGHT:1 $926 $926

RATE PER SAAB FLIGHT:2 $630 $630

WEEKLY CEILING: $25,928 3 $22,224 4

Note: Order 2011-12-25, December 29, 2011, reduced the required frequency from 14 

round trips per week per Order 2011-9-5 to 12, which Delta began providing on 

January 1, 2012.

 1 See Appendix B, page 1 of 11.

2 $926 * 34/50 = $630.

3 $926 * 28 flights per week.

4 $926 * 24 flights per week.
Appendix B

Page 4 of 11

Subsidy Rate Agreement for the Provision of Essential Air Service by 

Delta Air Lines, Inc., at Watertown (ATY), South Dakota, Docket 2001-10644

SERVICE: Nonstop to Minneapolis (MSP)

AIRCRAFT TYPE: CRJ-200, 50 seats

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

compensation. 

November 1, 2011 January 1, 2012

December 31, 2011 April 3, 2012

WEEKLY ROUND TRIPS 14 12

RATE PER CRJ FLIGHT:1 $2,492 $2,492

RATE PER SAAB FLIGHT2 $1,695 $1,695

WEEKLY CEILING: $69,776 3 $59,808 4

Note: Order 2011-12-25, December 29, 2011, reduced the required frequency from 14 

round trips per week per Order 2011-9-5 to 12, which Delta began providing on 

January 1, 2012.

 1 See Appendix B, page 1 of 11.

2 $2,492 x 34/50.

3 $2,492 * 28 flights per week.

4 $2,492 * 24 flights per week.
Appendix B

Page 5 of 11

Subsidy Rate Agreement for the Provision of Essential Air Service by 

Delta Air Lines, Inc., at Bemidji (BJI), Minnesota, Docket 2011-0134

SERVICE: Nonstop to Minneapolis (MSP)

AIRCRAFT TYPE: CRJ-200, 50 seats

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

compensation. 

October 13, 2011 January 1, 2012

December 31, 2011 March 2, 2012

WEEKLY ROUND TRIPS 14 12

RATE PER CRJ FLIGHT:1 $837 $837

RATE PER SAAB FLIGHT2 $569 $569

WEEKLY CEILING: $23,436 3 $20,088 4

Note: Order 2011-12-25, December 29, 2011, reduced the required frequency from 14 

round trips per week per Order 2011-9-5 to 12, which Delta began providing on 

January 1, 2012.

 1 See Appendix B, page 1 of 11. 2 $837 * 34/50 = $569.

3 $837 * 28 flights per week.

4 $837 * 24 flights per week.
Appendix B

Page 6 of 11

Subsidy Rate Agreement for the Provision of Essential Air Service by 

Delta Air Lines, Inc., at Fort Dodge (FOD), Iowa, Docket 2001-10682

SERVICE: Nonstop to Minneapolis (MSP)

AIRCRAFT TYPE: CRJ-200, 50 seats

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

compensation. 

October 13, 2011 January 1, 2012

December 31, 2011 April 11, 2012

WEEKLY ROUND TRIPS 14 12

RATE PER CRJ FLIGHT:1 $2,524 $2,524

RATE PER SAAB FLIGHT2 $1,716 $1,716

WEEKLY CEILING: $70,672 3 $60,576 4

Note: Order 2011-12-25, December 29, 2011, reduced the required frequency from 14 

round trips per week per Order 2011-9-5 to 12, which Delta began providing on 

January 1, 2012.

 1 See Appendix B, page 1 of 11.

2 $2,524 * 34/50 seats.

3 $2,524 * 28 flights per week.

4 $2,524 * 24 flights per week.
Appendix B

Page 7 of 11

Subsidy Rate Agreement for the Provision of Essential Air Service by 

Delta Air Lines, Inc., at Jamestown (JMS), North Dakota, Docket 2001-10684

SERVICE: Nonstop to Minneapolis (MSP)

AIRCRAFT TYPE: CRJ-200, 50 seats

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

compensation. 

December 11, 2011 January 1, 2012

December 31, 2012 March 17, 2012

WEEKLY ROUND TRIPS 14 12

RATE PER CRJ FLIGHT:1 $2,991 $2,991

RATE PER SAAB FLIGHT2 $2,034 $2,034

WEEKLY CEILING: $83,748 3 $71,7844

Note: The period 10/1/11 through 12/10/11 when Jamestown was served together with 

Devils Lake is included in Appendix C. Order 2011-12-25, December 29, 2011, reduced 

the required frequency from 14 round trips per week per Order 2011-9-5 to 12, which 

Delta began providing on January 1, 2012. 

 1 See Appendix B, page 1 of 11.

2 $2,991 * 34/50 seats. 3 $2,991 * 28 flights per week.

4 $2,991 * 24 flights per week.
Appendix B

Page 8 of 11

Subsidy Rate Agreement for the Provision of Essential Air Service by 

Delta Air Lines, Inc., at Mason City (MCW), Iowa, Docket 2001-10684

SERVICE: Nonstop to Minneapolis (MSP)

AIRCRAFT TYPE: CRJ-200, 50 seats

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

compensation. 

November 1, 2011 January 1, 2012

December 31, 2011 April 11, 2012

WEEKLY ROUND TRIPS 14 12

RATE PER CRJ FLIGHT:1 $2,124 $2,124

RATE PER SAAB FLIGHT2 $1,444 $1,444

WEEKLY CEILING: $59,472 3 $50,976 4

Note: Order 2011-12-25, December 29, 2011, reduced the required frequency from 14 

round trips per week per Order 2011-9-5 to 12, which Delta began providing on 

January 1, 2012.

 1 See Appendix B, page 1 of 11.

2 $2,124 * 34/50 seats.

3 $2,124 * 28 flights per week.

4 $2,124 * 24 flights per week.
Appendix B

Page 9 of 11

Subsidy Rate Agreement for the Provision of Essential Air Service by 

Delta Air Lines, Inc., at Pierre (PIR), South Dakota, Docket 2011-0138

SERVICE: Nonstop to Minneapolis (MSP)

AIRCRAFT TYPE: CRJ-200, 50 seats

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

compensation. 

November 21, 2011

January 31, 2012

WEEKLY ROUND TRIPS 12

RATE PER CRJ FLIGHT:1 $3,878

RATE PER SAAB FLIGHT 2 $2,637

WEEKLY CEILING: $93,072 3

Note: Order 2011-9-5 allowed Delta to terminate its Pierre to Minneapolis service. 

Order 2011-11-4 required Delta to reinstate twelve round trips per week, which the 

carrier did, effective November 21, 2011. Delta’s last day of service at Pierre was 

January 31, 2012, when it was replaced by Great Lakes’ subsidy-free service.

 1 See Appendix B, page 1 of 11.

2 $3,878 * 34/50 = $2,061. 3 $3,878 * 24 flights per week.
Appendix B

Page 10 of 11

Subsidy Rate Agreement for the Provision of Essential Air Service by 

Delta Air Lines, Inc., at Sioux City (SUX), Iowa, Docket 2011-0131

SERVICE: Nonstop to Minneapolis (MSP)

AIRCRAFT TYPE: CRJ-200, 50 seats

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

compensation. 

October 13, 2011 January 1, 2012

December 31, 2011 April 3, 2012

WEEKLY ROUND TRIPS 14 12

RATE PER CRJ FLIGHT:1 $541 $541

RATE PER SAAB FLIGHT2 $368 $368

WEEKLY CEILING: $15,148 3 $12,984 4

Note: Order 2011-12-25, December 29, 2011, reduced the required frequency from 14 

round trips per week per Order 2011-9-5 to 12, which Delta began providing on 

January 1, 2012.

 1 See Appendix B, page 1 of 11.

2 $541 * 34/50 = $368.

3 $541 * 28 flights per week.

4 $541 * 24 flights per week.
Appendix B

Page 11 of 11

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 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 this rate, 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 this 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.

Subsidy contract 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.

Funds are not currently available for performance under this Order beyond September 30, 

2012. The Government’s obligation for performance under this Order beyond September 

30, 2012, is subject to 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, 2012, until funds are 

made available to the Department for performance. If funds are not made available for 

performance beyond September 30, 2012, the Department will provide notice in writing 

to the carrier.

All claims for payment must be submitted within 60 days of the last day of service 

provided under this Order.
Appendix C

Page 1 of 5

Essential Air Service Provided at Devils Lake and Jamestown, and Hibbing and Thief River Falls

Communities with One-Stop Service

Devils Lake and Jamestown Hibbing Thief River Falls Hibbing Thief River Falls

JMS DVL Total HIB TVF HIB TVF

Docket 1997-2785 1997-2785 1997-2785 2003-15796 2001-10642 2003-15796 2001-10642

Round trips per Week to Hub 14 14 14 19 12 12 12

Nonstop Miles to MSP 299 351 174 261 174 261

Eligible Time Period 10/1-12/10 10/1-12/10 10/1-12/10 11/1-12-31 11/1-12-31 1/1--5/17 1/1--5/17

Selection Order 2009-8-6 2009-8-6 2009-8-6 2009-8-8 2010-12-9 2009-8-8 2010-12-9

Aircraft Type Saab 340 Saab 340 Saab 340 RJ RJ RJ RJ

Departures 361 178 539 282 190 481 428

MSP Deps/Ldgs. 1/ 271 286 0 493 0

Blk. Hours 324 115 439 284 166 439 346

Seats 7,588 6,052 13,640 11,556 8,044 24,153 21,504

MSP Seats 1/ 9,214 14,300 0 24,650 0

Passengers 2/ 3,332 1,825 5,157 4,392 828 10,339 2,162

MSP Pax. 1/ 3,650 3,564 0 8,177 0

Imputed Pax. Fare 2/ $98.87 $51.26 $83.06 $56.89 $82.52 $58.64

Pax Revenue $329,449 $93,557 $423,007 $364,802 $47,107 $853,166 $126,777

Other Revenue $39,769 $11,227 $50,995 $44,208 $5,653 $103,878 $15,374

Total Revenue $369,218 $104,784 $474,002 $409,010 $52,760 $957,044 $142,151

Direct Expeses $385,655 $137,109 $522,764 $720,681 $421,243 $1,113,961 $878,013

Indirects $292,147 $272,633 $68,611 $491,682 $147,777

Operating $814,911 $993,314 $489,854 $1,605,643 $1,025,790

Economic $855,657 $1,042,980 $514,347 $1,685,925 $1,077,080

Subsidy per Above $381,655 $633,970 $461,587 $728,881 $934,929

Subsidy per Community $190,828 $633,970 $461,587 $728,881 $934,929

Subsidy per Dep/ldg @ MSP $704 $2,217 $1,614 $1,478 $1,896

Weekly Ceiling $19,712 $84,246 $38,736 $35,472 $45,504

Annual Ceiling per Community $1,025,024 $4,380,792 $2,014,272 $1,844,544 $2,366,208

1/ MSP landings/departures and passengers for costing on MSP Station expense -- both passenger and departure related. MSP-passengers are the same 

as O&D passengers, and are used for determining reservation expense; i.e., exclude flow passengers and intermediate stops for determining those costs.

2/ These reflect segment passengers and fares, i.e., DVL and TVF passengers are included in the JMS and HIB columns, respectively.

Similarly, the Jamestown passengers includes those passengers flowing from DVL over JMS.

Note: DVL/JMS service was operated linear and round robin midday, so we have combined the expenses and subsidy for each community.

However, HIB/TVF was strictly linear, so we have arbitrarily assigned all MSP-related expenses to HIB. 
Appendix C

Page 2 of 5

Subsidy Rate Agreement for the Provision of Essential Air Service by Delta Air Lines, Inc., at 

Devils Lake (DVL) and Jamestown (JMS) , North Dakota, Docket 1997-2785

SERVICE: Nonstop or one-stop to Minneapolis (MSP)

AIRCRAFT TYPE: Saab 340, 34 seats

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

compensation. 

Devils Lake Jamestown

October 1, 2011 October 1, 2011

December 10, 2011 December 10, 2011

WEEKLY ROUND TRIPS 14 14

RATE PER FLIGHT:1 $704 $704

WEEKLY CEILING: 2 $19,712 $19,712

Note: Devils Lake and Jamestown were served together during this time period. Great 

Lakes replaced Delta at Devils Lake on December 10, 2012, but Delta continued serving 

Jamestown as shown in Appendix A through March 17, 2012.

 1 See Appendix C, page 1 of 5.

2 $704 x 28 flights in either direction.
Appendix C

Page 3 of 5

Subsidy Rate Agreement for the Provision of Essential Air Service by Delta Air Lines, Inc., at 

Hibbing (HIB), Minnesota, Docket 2003-15796

SERVICE: Nonstop or one-stop to Minneapolis (MSP)

AIRCRAFT TYPE: CRJ-200, 50 seats

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

compensation. 

November 1, 2011 January 1, 2012

December 31, 2011 May 17, 2012

WEEKLY ROUND TRIPS 19 12

RATE PER CRJ FLIGHT: 1 $2,217 $1,478

RATE PER SAAB FLIGHT: $1,5082 $1,0053

WEEKLY CEILING: $84,2464 $35,4725

Note: Order 2011-12-25, December 29, 2011, reduced the required frequency from 19

round trips per week per Order 2011-9-5 to 12, which Delta began providing on 

January 1, 2012.

 1 See Appendix C, page 1 of 5.

2 $2,217 x 34/50 seats.

3 $1,478 x 34/50 seats.

4 $2,217 x 38 flights in either direction.

5 $1,478 x 24 flights in either direction.
Appendix C

Page 4 of 5

Subsidy Rate Agreement for the Provision of Essential Air Service by Delta Air Lines, Inc., at 

Thief River Falls (TVF), Minnesota, Docket 2001-10642

SERVICE: One-stop to Minneapolis (MSP)

AIRCRAFT TYPE: CRJ-200, 50 seats

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

compensation. 

November 1, 2011 January 1, 2012

December 31, 2011 May 17, 2012

WEEKLY ROUND TRIPS 12 12

RATE PER CRJ FLIGHT: 1 $1,614 $1,896

RATE PER SAAB FLIGHT: $1,0982 $1,2893

WEEKLY CEILING: $38,7364 $45,5045

Note: This rate increases between the two periods because in the earlier period more of 

the combined subsidy is assigned to Hibbing to reflect the 19 round trips per week 

required at Hibbing in the early period. We required 12 round trips per week at Thief 

River Falls throughout the hold-in period.

 1 See Appendix B, page 1 of 5.

2 $1,614 x 34/50 seats.

3 $1,896 x 34/50 seats.

4 $1,614 x 24 flights in either direction.

5 $1,896 x 24 flights in either direction.
Appendix C

Page 5 of 5

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 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 this rate, 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 this 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.

Subsidy contract 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.

Funds are not currently available for performance under this Order beyond September 30, 2012. 

The Government’s obligation for performance under this Order beyond September 30, 2012, is 

subject to 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, 2012, until funds are made available to the Department 

for performance. If funds are not made available for performance beyond September 30, 2012, 

the Department will provide notice in writing to the carrier.
Appendix D

Page 1 of 4

Essential Air Service at Brainerd, MN, Docket 2011-0135

Brainerd International Falls 2/

Docket 2011-0135 2009-0304 2009-0304

Nonstop Miles to MSP (HIB) 114 255 86

Intermediate Stops None None Hibbing

Eligible -- 10/13/2011 1/ 1/11/2012 9/5/2012

 Time Period UFN 9/4/2012 UFN

Aircraft Type CRJ-200 CRJ-200 CRJ-200

Flts, both directions 1,453 836 340

Blk. Hours 1,107 907 238

Seats 72,650 41,800 17,000

Pax. 32,619 21,753 5,083

Imputed Pax. Fare $76.41 $107.65 $107.66

Pax Revenue $2,492,528 $2,341,710 $547,230

Other Revenue $303,500 $282,267 $65,668

Total Revenue $2,796,028 $2,623,977 $612,898

Direct Expenses $2,809,134 $2,301,612 $603,952

Indirects $1,792,025 $1,137,520 $241,738

Operating Expense $4,601,159 $3,439,132 $845,690

Economic $4,831,217 $3,611,089 $887,975

Subsidy per Above $2,035,189 $987,112 $275,077

$ per Departure $1,401 $1,181 $809

Weekly Ceiling, 2011 (14 trips/week) $39,228 NA NA

Weekly Ceiling, 2012 (12 trips/week) $33,624 $28,344 $19,416

1/ Delta began using only CRJ-200 equipment 12/15/11. The rate was constructed beginning

that date, not from October 13, 2011, when Saab 340 aircraft still operated.

2/ The carrier introduced one-stop service over Hibbing on September 5. 

The Hibbing route is costed incrementally, i.e., revenue is taken all the way to MSP,

station expenses are for International Falls only, other costs are strictly incremental.

All claims for payment must be submitted within 60 days of the last day of service 

provided under this Order.
Appendix D

Page 2 of 4

Subsidy Rate Agreement for the Provision of Essential Air Service by 

Delta Air Lines, Inc., at Brainerd, Minnesota (BRD) Docket 2011-0135

SERVICE: Nonstop to Minneapolis (MSP)

AIRCRAFT TYPE: CRJ-200, 50 seats

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

compensation. 

October 13, 2011 January 1, 2012

December 31, 2011 UFN1

WEEKLY ROUND TRIPS 14 12

RATE PER CRJ FLIGHT:2 $1,401 $1,401

RATE PER SAAB 340 FLIGHT3 $953 $953

WEEKLY CEILING: $39,228 4 $33,624 5

Note: Order 2011-9-5 required Delta to provide 14 round trips per week. 

Order 2011-12-25, December 29, 2011, reduced the required frequency from 14 round 

trips per week per to 12.

 1 Delta anticipates it will be replaced on December 15, 2012

2 See Appendix D, page 1 of 4.

3 $1,401 * 34/50 seats = $953.

4 $1,401 * 28 flights per week.

5 $1,401 * 24 flights per week.
Appendix D

Page 3 of 4

Subsidy Rate Agreement for the Provision of Essential Air Service by 

Delta Air Lines, Inc., at International Falls, MN (MSP) Docket 2009-0304

Hub: Minneapolis (MSP)

AIRCRAFT TYPE: CRJ-200, 50 seats

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

compensation. 

Effective Period October 13, 2011 -- September 5, 2012 --

of Rate September 4, 2012 UFN1

INTERMEDIATE STOPS None One

WEEKLY ROUND TRIPS 12 12

RATE PER CRJ FLIGHT:2 $1,181 $809

RATE PER SAAB FLIGHT:3 $803 $550

WEEKLY CEILING: $25,928 4 $22,224 5

Note: Order 2011-9-5 required Delta to provide 14 round trips per week. 

Order 2011-12-25, December 29, 2011, reduced the required frequency from 14 round 

trips per week per to 12.

 1 Delta anticipates it will be replaced on December 15, 2012. 2 See Appendix D, page 2 of 4.

3 $1,181 * 34/50 = $803; $809 x 34/50 = 550..

4 $1,181 x 24 flights per week.

5 $809 * 24 flights per week.
Appendix D

Page 4 of 4

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 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 this rate, 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 this 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.

Subsidy contract 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.

Funds are not currently available for performance under this Order beyond September 30, 2012. 

The Government’s obligation for performance under this Order beyond September 30, 2012, is 

subject to 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, 2012, until funds are made available to the Department 

for performance. If funds are not made available for performance beyond September 30, 2012, 

the Department will provide notice in writing to the carrier.

All claims for payment must be submitted within 60 days of the last day of service 

provided under this Order.