Order 2013-10-12

Served: October 22, 2013

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 22nd day of October, 2013

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is requesting proposals from carriers interested in providing 

Essential Air Service (EAS) at Jonesboro, Arkansas, for a new contract period, beginning 

March 1, 2014, with subsidy support if necessary. (See Appendix A for a map). Carriers 

should file their proposals no later than November 26, 2013.

Background

By Order 2011-12-14 (December 22, 2011), the Department selected Multi-Aero, Inc. d/b/a 

Air Choice One (Air Choice One) to provide three round trips each weekday and weekend (18 

weekly) from Jonesboro to Lambert-St. Louis International Airport (STL) using 9-passenger 

Cessna Grand Caravan aircraft, for a one year period beginning when the carrier inaugurated 

service through the end of the 12th month thereafter, at an annual subsidy rate of $1,717,781. 

Air Choice One inaugurated service at Jonesboro on February 13, 2012, thus making the

expiration date February 28, 2013. 

Subsequently, by Order 2013-2-24 (February 25, 2013), the Department extended the service 

period of Air Choice One by a one-year period, from March 1, 2013, through 

February 28, 2014. Under that Order, Air Choice One continues to provide the same level of 

service at the same annual subsidy level.1 

 1 See Order 2011-12-14 and 2013-2-24 for a complete discussion of Jonesboro’s eligibility in the EAS program 

over the past several years. Because Jonesboro’s eligibility in the EAS Program was in flux at the time of the 

carrier-selection Order in December 2011, and because Air Choice One and the community significantly 

increased passenger usage, Air Choice One’s rate was extended until February 28, 2014.

Essential Air Service at

JONESBORO, ARKANSAS

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

Docket DOT-OST-1997-2935
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Request for Proposals

As the end of the current contract approaches, the Department is requesting proposals from 

carriers interested in providing EAS at Jonesboro, with subsidy support if necessary, for a new 

contract period beginning March 1, 2014. Carriers should file their proposals no later than 

November 26, 2013. Staff will then docket the proposals, thereby making them public. 

Shortly afterwards, we will provide a summary of the proposals to the community and ask 

them to submit their final comments. We will give full consideration to all proposals that are 

timely filed.2

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 and 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, we recommend they include information 

concerning proposed schedules and projected block hours. In addition, applicants are 

encouraged to provide financial data supporting their subsidy requests, including information 

on their projected expenses and revenues. We strongly encourage clear, well-documented 

proposals that will facilitate their evaluation by the affected communities and the 

Department.3

The Department expects proposals that are consistent with what the community currently 

receives, with service to a suitable hub airport that provides numerous connecting 

opportunities to the national air transportation system. We encourage proposals that meet 

these guidelines in an efficient manner. Carriers are also welcome to propose more than one 

 2 Carriers should not expect the Department to accept late fillings. In cases where a carrier proposes to provide 

EAS without subsidy and we determine that basic EAS, as required by 49 U.S.C. § 41732, can be reliably 

provided without such compensation, we typically will not proceed with the carrier-selection case. Instead, we 

simply rely on that carrier’s subsidy-free service as proposed.

3 In selecting a carrier to provide subsidized EAS for an eligible place not in Alaska, 49 U.S.C. § 41733(c)(1) 

directs us to consider five factors: (a) service reliability; (b) contractual and marketing arrangements with a 

larger carrier at the hub; (c) interline arrangements with a larger carrier at the hub; (d) community views, giving 

substantial weight to the views of the elected officials representing the users; and (e) whether the carrier has 

included a plan in its proposal to market its service to the community. In addition, the Consolidated and Further 

Continuing Appropriations Act, 2012, Public Law No. 112-55, and continued by the Full-Year Continuing 

Appropriations Act, 2013, Public Law No. 113-6, and the Continuing Appropriations Act, 2014, Public Law No. 

113-46, provides that when selecting a carrier to provide EAS, the Department may consider the 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.
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service option, if they choose. They also need not limit themselves to these requirements if 

they envision other, potentially more attractive service possibilities -- different hubs or length 

of contract, for example -- with subsidy requirements that remain competitive.

Filing Procedures

Carrier proposals should be submitted to the Department with all materials merged into a 

single document. In addition, because the document will be published on Regulations.gov, 

each page should be formatted to be viewed online.

Service and Traffic History

We have provided some historic traffic data for the community in Appendix B. Traffic has 

increased significantly since Air Choice One began serving the route in 2012, growing from 

2,217 annual passengers in 2011 to 10,340 in the most recent 12-month period or about 16.5 

enplanements per day. 

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.4 Consequently, all carriers receiving 

Federal subsidy for EAS 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 contract 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) 366-5903.5

Community Comments

The community is welcome to submit comments at any time. We encourage prospective 

applicants to contact the community before they submit their proposals so that they can tailor 

them to the community’s needs, as they will not be able to amend them after the due date. As 

noted earlier, we will provide a summary of the proposals to the civic parties shortly after the 

deadline for carrier proposals, and ask them to submit their final comments.

 

4 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; (3) 49 CFR Part 27 -- Nondiscrimination on the Basis of 

Disability in Programs and Activities Receiving or Benefiting from Federal Financial Assistance; (4) 

14 CFR Part 382 -- Nondiscrimination on the Basis of Disability in Air Travel; and (5) 49 CFR Part 29 --

Government-Wide Debarment and Suspension (Non-Procurement) and Government-Wide Requirements for 

Drug-Free Workplace (Grants).

5 The certifications are also available on the web at http://www.dot.gov/policy/aviation-policy/small-communityrural-air-service/essential-air-service. 
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This Order is issued under authority delegated in 49 CFR Part 1.25a(b) and re-delegated to the 

Director, Office of Aviation Analysis.

ACCORDINGLY,

1. We request that carriers interested in providing Essential Air Service at 

Jonesboro, Arkansas, submit their proposals, with subsidy support if necessary, no later than 

November 26, 2013. The proposals should be e-mailed to: EAS@dot.gov with the title

“Proposal to Provide EAS at Jonesboro, Arkansas”;6

2. This docket will remain open until further Order of the Department; and

3. We will serve copies of this Order on the mayor of Jonesboro, Arkansas, the airport 

manager of the Jonesboro Municipal Airport, and the service list for this docket.

Persons entitled to petition the Department for review of this Order under the Department’s 

Regulations, 14 CFR Part 385.31(a), must file such petitions within seven (7) days after the 

date of service of this Order.

This Order will be effective immediately, and the filing of a petition for review shall not 

preclude its effectiveness.

By:

TODD M. HOMAN

Director

Office of Aviation Analysis

(SEAL)

An electronic version of this document is available

online at http://www.regulations.gov. 

 6 Questions regarding filings in response to this Order may be directed to A.J. Muldoon at (202) 366-1058 or

albert.muldoon@dot.gov. 
Appendix A

AREA MAP

This map is provided by Sabre® AirVisionTM Profit Essentials and is being used with express permission of the 

copyright holder, Sabre Airline Solutions®.
Appendix B

EAS Carrier Traffic at Jonesboro, AR (JBR)1

Year Month Carrier Origin 

Pax Destination Pax Total Pax

2011 1 SeaPort 30 43 73

2011 2 SeaPort 52 42 94

2011 3 SeaPort 78 64 142

2011 4 SeaPort 81 69 150

2011 5 SeaPort 133 101 234

2011 6 SeaPort 110 110 220

2011 7 SeaPort 132 107 239

2011 8 SeaPort 104 93 197

2011 9 SeaPort 80 89 169

2011 10 SeaPort 80 63 143

2011 11 SeaPort 234 247 481

2011 12 SeaPort 47 28 75

2012 1 SeaPort 25 34 59

2012 2 SeaPort 10 13 23

2012 2 Air Choice One 122 127 249

2012 3 Air Choice One 351 340 691

2012 4 Air Choice One 364 328 692

2012 5 Air Choice One 447 430 877

2012 6 Air Choice One 465 398 863

2012 7 Air Choice One 560 522 1,082

2012 8 Air Choice One 543 487 1,030

2012 9 Air Choice One 420 349 769

2012 10 Air Choice One 468 476 944

2012 11 Air Choice One 473 430 903

2012 12 Air Choice One 480 445 925

2013 1 Air Choice One 339 328 667

2013 2 Air Choice One 350 316 666

2013 3 Air Choice One 476 446 922

FY 2012 Average Daily Enplanements2 11.2

YE-March 31, 2013 Average Daily Enplanements2 16.5

Notes:

1. Source: Bureau of Transportation Statistics T-100 Market.

2. Annual enplanements divided by 313 annual service days (314 in leap years).
Appendix C

Example of General Terms and Conditions for Essential Air Service

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 complete, 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.

Funds may not be available for performance under this Order beyond [DATE]. The Government’s 

obligation for performance under this Order beyond [DATE], is subject to the availability of 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 [DATE], until funds are made 

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

performance beyond [DATE], the Department will provide notice in writing to the carrier.

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, including any amended claims, must be submitted within 80 days of the last 

day of the month for which compensation is being claimed. For example, claims for service provided 

in July must be filed by October 31st; August claims must be submitted by November 30th, and so on.