## Order: 2014

- 11

- 18 Served: November 25 , 2014



## UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.
Issued by the Department of Transportation on the 25 th 

## of November , 2014

Essential Air Service at
CRESCENT CITY, CALIFORNIA MOAB, UTAH PUEBLO, COLORADO VERNAL, UTAH

Under 49 U.S.C. 41731 et seq

. Docket DOT

- OST

- 1997

- 2649 Docket DOT

- OST

- 1997

- 2827 Docket DOT

- OST

- 1999

- 6589 Docket DOT

- OST

- 1997

- 2706

ORDER PROHIBITING TERMINTATION OF SERVICE AND REQUESTING PROPOSALS
Summary By this Order, the Department prohibits SkyWest Air lines (“ SkyWest ”), from terminating service at the four above

- named communities for 30 days beyond the end of the air carrier’s 90

- day notice perio d, i.e. February 16 , 2015

. The Department is also requesting proposals from air carriers interested in providing Essential Air Service (“EAS ”) at any or all of the above

- named communities . Proposals are due December 22, 2014

. (See Appendix A for an area map).

Background By a series of Orders earlier this year 1 

## , the Department selected SkyWest to provide subsidized EAS at all four communities. SkyWest provides 12 weekly nonstop round trips to each community with 30

- passenger EMB

- 120 Brasilia aircraft as Delta Connection (at Moab and Vernal) and as United Express (at Crescent City and Pueblo). Moab and Vernal receive service to Salt Lake City International Airport, Crescent City receives service to San Francisco International Airport, and Pueblo receives service to Denver International Airport. The annual subsidy amounts are: $ 2 , 454 , 084 (Crescent City), $ 2,303,347 (Moab), $ 1,737,732 (Pueblo ) , and $ 1,415,696 (Vernal).

On November 18, 2014, SkyWest filed notices to terminate turboprop air service at all four communities, on varying date s (February 1, 2015 at Pueblo; April 6, 2015 at Crescent City, and April 30, 2015 at Moab and Vernal) . In th e notices , SkyWest state d that it will transition to an

1 

### Order 2014

- 4

- 23, April 22, 2014 (Crescent City), Order 2014

- 2

- 18, February 25, 2014 (Moab , Vernal, and Pueblo )

.

## - 2

-
all jet fleet in 2015 and will eliminate the EMB

- 120 Brasilia from the SkyWest fleet. SkyWest state d that the fleet change is driven , “ in part by the additional challenges associated with new FAR117 flight and duty rules, implemented in January 2014

. ” Because Sk yWest ’s termination would result in the communities not hav ing scheduled air service that they are entitled to under the EAS program , the Department is required by law to initiate a new carrier

- selection process.
The complete public file for EAS at all f our communities may be accessed online through the Federal Dockets Management System at: www.regulations.gov by entering “ OST

- 1997

- 2649 ” for Crescent City, “OST

- 1997

- 2827”for Moab, “OST

- 1999

- 6589” for Pueblo, and “OST

- 1997

- 2706” for Vernal in the “ Search for Rules, Comments, Adjudications, or Supporting Documents ” field.

Hold

- In SkyWest ’s proposed termination of service at all four communities would cause service levels to drop below the EAS guaranteed levels established by the Department. Thus, the Department is required by law to prohibit the air carrier from terminating such service at the end of its 90

- day notice , i.e. February 16, 2015

. As such, t he Department will require SkyWest to continue to maintain its current level of service at these four communities for successive 30

- day periods until the Department ha s completed processing the air carrier

- replacement case and the sele cted air carrier has initiated service. 2


## Special D iscussion C oncerning Pueblo Since SkyWest has filed notice to terminate its service at Pueblo, and, thus, its contract with the Department, a new contract will be required to replace SkyWest’s current service.
The Consolidated Appropriations Act, 2014, Public Law No. 113

- 76, and continue d in the Continuing Appropriations Resolution, 2015, Public Law No. 113

- 164 s tates, “[T]hat none of the funds in this Act or any other Act shall be used to enter into a new contract with a community located less than 40 miles from the nearest small hub air port before the Secretary has negotiated with the community over a local cost share.” As Pueblo is located less than 40 miles from Colorado Springs Airport (COS), a small hub as measured by the most recent data published by the Department (CY2013 FAA’s En planements at Commercial Service Airports report), the Department is required to negotiate a local cost share with the community of Pueblo before entering into a new contract to replace SkyWest’s current service with its EMB

- 120 aircraft, which the carrier has announced its plans to retire.
Prospective air carriers should be aware of this provision when discussing service proposals with the community and officials in Pueblo should be aware of the provision and be prepared to negotiate with the Department on a local cost share after proposals are received but before the Department issues a carrier selection Order in response to this request for proposals.

R e qu e st F or P r o p osals In order to provide sufficient time to complete the carrier

- selection process before SkyWest terminates its service, the Department is here by requesting proposals from air carriers

2 

### In accordance with 49 U.S.C. 41734(c), the Department will extend SkyWest ’s service obligation for successive 30

- day periods as necessary until replacement service begins.

## - 3

-
interested in providing service at Crescent City, Moab, Pueblo , and/or Vernal, with or without subsidy support. Air carriers should file their proposals no later than December 22, 2014

. After that date, proposals will be docketed , thereby making them public, and direct each air carrier to serve a copy of its proposa l on the civic parties and other applicants. Shortly thereafter, the Department will provide a summary of the proposals to community officials and ask them to submit their final comments. The Department will give full consideration to all proposals filed in a timely manner

. 3 

## For aircraft seating 19 to 5 0 pass engers, the Department expect s proposals of 12 nonstop
r ound trips per week to a suitable hub airport, with numerous connecting flights to choose from. Alternatively, the Department will consider proposals consisting of additional frequencies if smaller aircraft (9

- passenger) are contemplated. The Department encourage s proposals that meet these guidelines in a cost

- effective manner. Air c arriers are also welcome to propose more than one 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 compe titive.
Unlike at Pueblo and Vernal, SkyWest has indicated it will not have any aircraft in its fleet to safely operate at Crescent City and Moab past the dates given in its termination notices. This gives particular urgency to finding a replacement carr ier at Crescent City and Moab

. P rospective carriers should include a proposed start date as part of their service proposals.
The Department is here by providing interested air carriers with some basic information to serve as guidance when they prepare the ir proposals, but the Department is not prescrib ing a precise format for their proposals. The Department expect s 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, the Department recommend s they include info rmation 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. The Department strongly e ncourage s clear, well

- documented proposals that will facilitate their evaluation by the affected community and the Department. 4

3 

### Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide EAS without subsidy and we determine that ba sic EAS, required by 49 U.S.C. § 41732, can be reliably provided without such compensation, we typically do not proceed with the carrier

- selection case. Instead, the Department simply rel ies on that carrier’s subsidy

- free service as proposed. 4 In select ing 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 ar rangements 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 A ppropriations Act, 201 4 , Public Law No. 11 3

- 76, and continued in the Continuing Appropriations Resolution, 2015, Public Law No. 113

- 164 , provides that when selecting a carrier to provide EAS, the Department may consider t he 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

## - 4

-

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 Hi stori c al traffic data for the communities are in Appendix B

. Other Carrier Requirements The Department is responsible for implementing various Federal statutes governing lobbying activities, drug

- free workplaces, and nondiscrimination. 5 

## Consequently, all carriers receiving Federal subsidy for EAS must certify that they are in compliance with Dep artment 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. Be cause 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 certific ations. Interested carriers requiring more detailed information regarding these requirements should contact the Offic e of Aviation Analysis at (202) 366

- 5903. 6


## Community Comments Civic officials are welcome to submit comments at any time. The Departmen t encourage s prospective appl icants to contact communities before they submit their proposals so that they can tailor them to the communit y ’ s needs, as they will not be able to amend them after the due date. As noted earlier, the Department 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.
ACCORDINGLY, 1. The Department prohibit s SkyWest Airlines from suspending service at Crescent Cit y, California , at the end of the 90

- day notice period (February 16, 2015) , and require it to maintain its current level of service at the commu nities , as set forth in Appendix C , for an initial 30

- day period through March 18, 2015 , or until an air carrier capable of provid ing reliable EAS actually begins service, whichever is first;

O rder as part of our authorization of subsidy for the selected service. Appendix D of this Order contains those general provisions. 5 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 Progra ms 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 Govern ment

- Wide Requirements for Drug

Free Workplace (Grants). 6 

### The certifications are also available on the web at http://www.dot.gov/policy/aviat ion

- policy/small

- community

rural

- air

- service/essential

- air

- service

.

## - 5

-

2. The Department prohibit s SkyWest Airlines from suspending service at Moab , Utah , at the end of the 90

- day notice period (February 16, 2015) , and require it to maintain its current level of service at the commu nities, as set forth in Appendix C , for an initial 30

- day period through March 18, 2015 , or until an air carrier capable of provid ing reliable EAS actually begins service, whichever is first;
3. The Department prohibi t s SkyWest Airlines from suspending service at Pueblo, Colorado , at the end of the 90

- day notice period (February 16, 2015) , and require it to maintain its current level of service at the commu nities, as set forth in Appendix C , for an initial 30

- day period through March 18, 2015 , or until an air carrier capable of provid ing reliable EAS actually begins service, whichever is first;
4. The Department prohibit s SkyWest Airlines from suspending service at Vernal , Utah , at the end of the 90

- day notice period (February 16, 2015) , and require it to maintain its current level of service at the commu nities, as set forth in Appendix C , for an initial 30

- day period through March 18, 2015 , or until an air carrier capable of provid ing reli able EAS actually begins service, whichever is first;

5. The Department request s that air carriers interested in providing EAS at Crescent City, California ; Moab, Utah ; Pueblo , Colorado ; and/or Vernal, Utah, submit their proposal, with or without subsidy requests, no later than December 22, 2014 . The proposal should be emailed to: EAS@dot.gov with the title “Proposal to Pro vide EAS at Crescent City, Moab, Pueblo, and/or Verna l ”; 7

7 

### Questions regarding filings in response to this Order may be directed to Michael Martin (for Crescent City) at (202) 366

- 6494 or michael .f.martin@dot.gov ; to Scott Faulk (for Pueblo) at (202) 366

- 9967 or scott.faulk@dot.gov ; and to A.J. Muldoon (for Moab and/or Vernal) at (202) 366

- 1058 or albert.muldo on@dot.gov

.

## - 6

-

6

. Th ese docket s will remai n open until further O rder of the Department; and

7

. The Department will serve copies of this O rder on the mayo rs of Crescent City, California, Moab, Utah, Pueblo , Colorado, and Vernal, Utah, the airport manager s at Del Norte County Regional Airport (Crescent City), Canyonlands Field (Moab), Pueblo Memorial Airport , Vernal Regional Airport, and the service list for th ese docket s

. By:

BRANDON M. BELFORD Deputy Assistant Secretary for Aviation and International Affairs
(SEAL) An electronic version of this document is available

o nline at http://www.regulations.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 Airlines Solutions ®.

## Appendix B

EAS Carrier Traffic at Crescent City (CEC)

Apt Year Month Uniquecarriername Enplanements Deplanements Totals CEC 2010 10 SkyWest Airlines Inc. 1,225 1,244 2,469 CEC 2010 11 SkyWest Airlines Inc. 1,331 1,300 2,631 CEC 2010 12 SkyWest Airlines Inc. 1,214 1,335 2,549 CEC 2011 1 SkyWest Airlines Inc. 942 898 1,840 CEC 2011 2 SkyWest Airlines Inc. 824 822 1,646 CEC 2011 3 SkyWest Airlines Inc. 941 938 1,879 CEC 2011 4 SkyWest Airlines Inc. 1,100 1,102 2,202 CEC 2011 5 SkyWest Airlines Inc. 1,342 1,395 2,737 CEC 2011 6 SkyWest Airlines Inc. 1,186 1,264 2,450 CEC 2011 7 SkyWest Airlines Inc. 1,291 1,323 2,614 CEC 2011 8 SkyWest Airlines Inc. 1,516 1,503 3,019 CEC 2011 9 SkyWest Airlines Inc. 1,300 1,134 2,434 28,470 FY2011

CEC 2011 10 SkyWest Airlines Inc. 1,192 1,176 2,368 CEC 2011 11 SkyWest Airlines Inc. 1,204 1,186 2,390 CEC 2011 12 SkyWest Airlines Inc. 1,270 1,265 2,535 CEC 2012 1 SkyWest Airlines Inc. 913 955 1,868 CEC 2012 2 SkyWest Airlines Inc. 871 849 1,720 CEC 2012 3 SkyWest Airlines Inc. 1,175 1,087 2,262 CEC 2012 4 SkyWest Airlines Inc. 911 1,007 1,918 CEC 2012 5 SkyWest Airlines Inc. 1,068 1,297 2,365 CEC 2012 6 SkyWest Airlines Inc. 1,106 1,222 2,328 CEC 2012 7 SkyWest Airlines Inc. 1,213 1,227 2,440 CEC 2012 8 SkyWest Airlines Inc. 1,227 1,351 2,578 CEC 2012 9 SkyWest Airlines Inc. 943 1,046 1,989 26,761 FY2012

CEC 2012 10 SkyWest Airlines Inc. 1,083 1,004 2,087 CEC 2012 11 SkyWest Airlines Inc. 982 1,018 2,000 CEC 2012 12 SkyWest Airlines Inc. 1,049 1,245 2,294 CEC 2013 1 SkyWest Airlines Inc. 812 1,075 1,887 CEC 2013 2 SkyWest Airlines Inc. 730 796 1,526 CEC 2013 3 SkyWest Airlines Inc. 922 1,035 1,957 CEC 2013 4 SkyWest Airlines Inc. 854 993 1,847 CEC 2013 5 SkyWest Airlines Inc. 1,107 1,208 2,315 CEC 2013 6 SkyWest Airlines Inc. 1,071 1,106 2,177 CEC 2013 7 SkyWest Airlines Inc. 1,204 1,162 2,366 CEC 2013 8 SkyWest Airlines Inc. 1,318 1,374 2,692 CEC 2013 9 SkyWest Airlines Inc. 1,106 1,025 2,131 25,279 FY2013

CEC 2013 10 SkyWest Airlines Inc. 932 871 1,803 CEC 2013 11 SkyWest Airlines Inc. 861 872 1,733 CEC 2013 12 SkyWest Airlines Inc. 1,186 1,142 2,328 CEC 2014 1 SkyWest Airlines Inc. 912 860 1,772 CEC 2014 2 SkyWest Airlines Inc. 833 796 1,629 CEC 2014 3 SkyWest Airlines Inc. 1,029 1,003 2,032 CEC 2014 4 SkyWest Airlines Inc. 1,141 1,047 2,188 CEC 2014 5 SkyWest Airlines Inc. 1,264 1,268 2,532 CEC 2014 6 SkyWest Airlines Inc. 1,388 1,233 2,621 CEC 2014 7 SkyWest Airlines Inc. 1,387 1,324 2,711 CEC 2014 8 SkyWest Airlines Inc. 1,409 1,274 2,683 CEC 2014 9 SkyWest Airlines Inc. 1,246 1,125 2,371 26,403 FY2014

## Appendix B EAS Carrier Traffic at Moab (CNY)

Apt Year Month Uniquecarriername Enplanements Deplanements Totals CNY 2010 10 Great Lakes Airlines 334 283 617 CNY 2010 11 Great Lakes Airlines 218 242 460 CNY 2010 12 Great Lakes Airlines 114 124 238 CNY 2011 1 Great Lakes Airlines 98 85 183 CNY 2011 2 Great Lakes Airlines 102 137 239 CNY 2011 3 Great Lakes Airlines 191 227 418 CNY 2011 4 Great Lakes Airlines 380 409 789 CNY 2011 5 Great Lakes Airlines 525 479 1,004 CNY 2011 6 Great Lakes Airlines 451 477 928 CNY 2011 7 Great Lakes Airlines 398 312 710 CNY 2011 8 Great Lakes Airlines 358 374 732 CNY 2011 9 Great Lakes Airlines 503 498 1,001 7,319 FY2011

CNY 2011 10 Great Lakes Airlines 404 403 807 CNY 2011 11 Great Lakes Airlines 319 283 602 CNY 2011 12 Great Lakes Airlines 155 153 308 CNY 2012 1 Great Lakes Airlines 131 139 270 CNY 2012 2 Great Lakes Airlines 137 168 305 CNY 2012 3 Great Lakes Airlines 273 330 603 CNY 2012 4 Great Lakes Airlines 463 460 923 CNY 2012 5 Great Lakes Airlines 485 559 1,044 CNY 2012 6 Great Lakes Airlines 429 404 833 CNY 2012 7 Great Lakes Airlines 364 389 753 CNY 2012 8 Great Lakes Airlines 334 373 707 CNY 2012 9 Great Lakes Airlines 435 460 895 8,050 FY2012

CNY 2012 10 Great Lakes Airlines 468 416 884 CNY 2012 11 Great Lakes Airlines 284 251 535 CNY 2012 12 Great Lakes Airlines 192 183 375 CNY 2013 1 Great Lakes Airlines 145 167 312 CNY 2013 2 Great Lakes Airlines 119 161 280 CNY 2013 3 Great Lakes Airlines 372 424 796 CNY 2013 4 Great Lakes Airlines 456 451 907 CNY 2013 5 Great Lakes Airlines 500 541 1,041 CNY 2013 6 Great Lakes Airlines 430 438 868 CNY 2013 7 Great Lakes Airlines 452 432 884 CNY 2013 8 Great Lakes Airlines 408 435 843 CNY 2013 9 Great Lakes Airlines 486 424 910 8,635 FY2013

CNY 2013 10 Great Lakes Airlines 469 475 944 CNY 2013 11 Great Lakes Airlines 235 227 462 CNY 2013 12 Great Lakes Airlines 109 124 233 CNY 2014 1 Great Lakes Airlines 22 17 39 CNY 2014 3 SkyWest Airlines Inc. 329 391 720 CNY 2014 4 SkyWest Airlines Inc. 774 754 1,528 CNY 2014 5 SkyWest Airlines Inc. 910 864 1,774 CNY 2014 6 SkyWest Airlines Inc. 741 658 1,399 CNY 2014 7 SkyWest Airlines Inc. 614 570 1,184 CNY 2014 8 SkyWest Airlines Inc. 516 603 1,119 CNY 2014 9 SkyWest Airlines Inc. 869 863 1,732 11,134 FY2014

## Appendix B Essential Air Service traffic at Pueblo (PUB)

Apt Year Month Uniquecarriername Enplanements Deplanements Totals PUB 2010 10 Great Lakes Airlines 441 453 894 PUB 2010 11 Great Lakes Airlines 397 393 790 PUB 2010 12 Great Lakes Airlines 454 442 896 PUB 2011 1 Great Lakes Airlines 399 404 803 PUB 2011 2 Great Lakes Airlines 370 378 748 PUB 2011 3 Great Lakes Airlines 513 533 1,046 PUB 2011 4 Great Lakes Airlines 460 472 932 PUB 2011 5 Great Lakes Airlines 522 551 1,073 PUB 2011 6 Great Lakes Airlines 579 610 1,189 PUB 2011 7 Great Lakes Airlines 567 536 1,103 PUB 2011 8 Great Lakes Airlines 629 658 1,287 PUB 2011 9 Great Lakes Airlines 564 527 1,091 11,852 FY2011

PUB 2011 10 Great Lakes Airlines 496 501 997 PUB 2011 11 Great Lakes Airlines 439 429 868 PUB 2011 12 Great Lakes Airlines 468 431 899 PUB 2012 1 Great Lakes Airlines 419 404 823 PUB 2012 2 Great Lakes Airlines 348 387 735 PUB 2012 3 Great Lakes Airlines 421 397 818 PUB 2012 4 Great Lakes Airlines 289 308 597 PUB 2012 5 Great Lakes Airlines 384 317 701 PUB 2012 6 Great Lakes Airlines 310 300 610 PUB 2012 7 Great Lakes Airlines 348 316 664 PUB 2012 8 Great Lakes Airlines 319 331 650 PUB 2012 9 Great Lakes Airlines 306 245 551 8,913 FY2012

PUB 2012 10 Great Lakes Airlines 349 352 701 PUB 2012 11 Great Lakes Airlines 395 392 787 PUB 2012 12 Great Lakes Airlines 363 359 722 PUB 2013 1 Great Lakes Airlines 312 338 650 PUB 2013 2 Great Lakes Airlines 258 256 514 PUB 2013 3 Great Lakes Airlines 449 439 888 PUB 2013 4 Great Lakes Airlines 387 361 748 PUB 2013 5 Great Lakes Airlines 402 351 753 PUB 2013 6 Great Lakes Airlines 443 410 853 PUB 2013 7 Great Lakes Airlines 457 429 886 PUB 2013 8 Great Lakes Airlines 439 440 879 PUB 2013 9 Great Lakes Airlines 398 362 760 9,141 FY2013

PUB 2013 10 Great Lakes Airlines 340 349 689 PUB 2013 11 Great Lakes Airlines 359 283 642 PUB 2013 12 Great Lakes Airlines 357 252 609 PUB 2014 1 Great Lakes Airlines 24 19 43 PUB 2014 4 SkyWest Airlines Inc. 366 340 706 PUB 2014 5 SkyWest Airlines Inc. 512 483 995 PUB 2014 6 SkyWest Airlines Inc. 526 473 999 PUB 2014 7 SkyWest Airlines Inc. 555 535 1,090 PUB 2014 8 SkyWest Airlines Inc. 484 467 951 PUB 2014 9 SkyWest Airlines Inc. 541 450 991 7,715 FY2014

## Appendix B Essential Air Service Traffic at Vernal (VEL)

Apt Year Month Uniquecarriername Enplanements Deplanements Totals VEL 2010 10 Great Lakes Airlines 428 395 823 VEL 2010 11 Great Lakes Airlines 400 409 809 VEL 2010 12 Great Lakes Airlines 298 281 579 VEL 2011 1 Great Lakes Airlines 387 367 754 VEL 2011 2 Great Lakes Airlines 364 358 722 VEL 2011 3 Great Lakes Airlines 404 404 808 VEL 2011 4 Great Lakes Airlines 383 375 758 VEL 2011 5 Great Lakes Airlines 454 458 912 VEL 2011 6 Great Lakes Airlines 449 437 886 VEL 2011 7 Great Lakes Airlines 457 448 905 VEL 2011 8 Great Lakes Airlines 503 444 947 VEL 2011 9 Great Lakes Airlines 483 474 957 9,860 FY2011

VEL 2011 10 Great Lakes Airlines 574 560 1,134 VEL 2011 11 Great Lakes Airlines 532 568 1,100 VEL 2011 12 Great Lakes Airlines 507 461 968 VEL 2012 1 Great Lakes Airlines 521 553 1,074 VEL 2012 2 Great Lakes Airlines 519 473 992 VEL 2012 3 Great Lakes Airlines 480 480 960 VEL 2012 4 Great Lakes Airlines 549 549 1,098 VEL 2012 5 Great Lakes Airlines 630 660 1,290 VEL 2012 6 Great Lakes Airlines 513 530 1,043 VEL 2012 7 Great Lakes Airlines 661 649 1,310 VEL 2012 8 Great Lakes Airlines 732 657 1,389 VEL 2012 9 Great Lakes Airlines 608 613 1,221 13,579 FY2012

VEL 2012 10 Great Lakes Airlines 715 723 1,438 VEL 2012 11 Great Lakes Airlines 651 632 1,283 VEL 2012 12 Great Lakes Airlines 665 616 1,281 VEL 2013 1 Great Lakes Airlines 653 661 1,314 VEL 2013 2 Great Lakes Airlines 558 499 1,057 VEL 2013 3 Great Lakes Airlines 616 628 1,244 VEL 2013 4 Great Lakes Airlines 586 629 1,215 VEL 2013 5 Great Lakes Airlines 729 788 1,517 VEL 2013 6 Great Lakes Airlines 812 847 1,659 VEL 2013 7 Great Lakes Airlines 868 833 1,701 VEL 2013 8 Great Lakes Airlines 762 734 1,496 VEL 2013 9 Great Lakes Airlines 742 713 1,455 16,660 FY2013

VEL 2013 10 Great Lakes Airlines 758 784 1,542 VEL 2013 11 Great Lakes Airlines 609 575 1,184 VEL 2013 12 Great Lakes Airlines 490 451 941 VEL 2014 1 Great Lakes Airlines 80 55 135 VEL 2014 3 SkyWest Airlines Inc. 323 299 622 VEL 2014 4 SkyWest Airlines Inc. 390 375 765 VEL 2014 5 SkyWest Airlines Inc. 406 350 756 VEL 2014 6 SkyWest Airlines Inc. 343 284 627 VEL 2014 7 SkyWest Airlines Inc. 418 386 804 VEL 2014 8 SkyWest Airlines Inc. 439 393 832 VEL 2014 9 SkyWest Airlines Inc. 464 429 893 9,101 FY2014

## App endix C

Essential Air Service to be Maintained

Effective Period: February 16, 2015 , until further Department action

Scheduled Service:

• 12 weekly nonstop round trips from Crescent City (CEC) to San Francisco (SFO)

• 12 weekly nonstop round trips from Moab (CNY) to Salt Lake City (SLC)

• 12 weekly nonstop round trips from Pueblo (PUB) to Denver (DEN)

• 12 weekly nonstop round trips from Vernal (VEL) to Salt Lake City (SLC)

Aircraft: 30

- se at EMB

- 120 Brasilia

## Appendix D

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 land ing 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 subsid y. 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 beyon d 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 De partment 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 su bsidy 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 paymen ts 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 perfor mance 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 fun ds 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 referenc e, 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 amend ed claims, must be submitted within 90 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 31 st 

## ; August claims must be submitted by November 30 th 

## , and so on.