Order 2011-11-26

Served: November 22, 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 22th day of Novemver, 2011

Essential Air Service at

BAR HARBOR, MAINE

PRESQUE ISLE/HOULTON, MAINE

PLATTSBURGH, NEW YORK

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

DOCKET DOT-OST-2011-0185

DOCKET DOT-OST-2000-8012

DOCKET DOT-OST-2003-14783

ORDER PROHIBITING TERMINATION OF SERVICE AND 

REQUESTING PROPOSALS

Summary

By this order, the Department is (a) prohibiting Colgan Air, Inc., operating as US Airways 

Express (Colgan), from terminating its subsidized service at Bar Harbor and Presque 

Isle/Houlton, Maine (Presque Isle), and Plattsburgh, New York, and (b) requesting proposals 

from airlines interested in providing replacement essential air service (EAS) at any or all of the 

communities, with or without subsidy. Proposals are due by December 20, 2011. (See 

Appendix A for a map.)

Background

Colgan has served Presque Isle for several years and was re-selected in 2010 to provide EAS 

for another two-year contract. Colgan replaced Cape Air in 2010 at Bar Harbor and Plattsburgh 

as the communities’ EAS carrier. On September 9, 2011, Colgan filed notice of its intent to 

terminate its subsidized service at all three communities, as summarized below:

 

Community Annual

Subsidy

Order Thru Hub Weekly 

Round

Trips

Stops Aircraft

1. Bar Harbor $2,298,533 2010-9-28 10/31/12 BOS 14 0 Saab 340

2. Plattsburgh $2,117,101 2010-3-27 06/30/12 BOS 12 0 Saab 340

3 Presque Isle $2,812,853 2010-6-5 05/31/12 BOS 19 0 Saab 340
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Hold-In

Colgan’s proposed termination of service at these communities would leave them with no 

scheduled air service. Thus, the Department must prohibit Colgan from terminating such 

service for 30 days beyond the end of their 90-day notice period, through January 7, 2012, and 

will require them to maintain the current level of service at all three communities, for 

successive 30-day periods until we have completed processing the carrier-replacement case and 

the selected carrier(s) begins full EAS. 

Request for Proposals

Carriers should file their proposals no later than December 20, 2011. After that date, our staff 

will docket proposals, thereby making them public, and shortly afterwards will provide a 

summary of the proposals to the community and ask them for their final comments. We will 

give full consideration to all proposals filed in a timely manner. 

Interested carriers should prepare their proposals with every expectation that their initial 

proposals will also be their final and only proposals. We retain the discretion to negotiate 

proposals with carriers when we deem it desirable. We also retain the discretion to reject 

outright all unreasonable or unrealistic proposals and solicit a new round of proposals.

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.

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. 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 community and the Department.1

Carriers are also welcome to propose more than one option, if they choose; they need not limit 

themselves to those requirements if they envision other, potentially more attractive service 

possibilities -- different hubs, frequency or equipment, for example -- with subsidy 

requirements that remain competitive. The community 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 airlines.

 1 In selecting a carrier to provide subsidized essential air service, 49 U.S.C. 41733(c)(1) directs us to consider 

four factors: (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 

Consolidated Appropriations Act, 2008, Public Law 110-161, 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 EAS 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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Proposals should provide sufficient capacity to accommodate historical levels of traffic. We

expect service levels that are comparable with what the communities currently receive, with 

nonstop service to Boston or any large or medium hub that offers access to the national air 

transportation system. In order to assist carriers in developing traffic and revenue projections 

for their proposals, we have provided a summary of historical passengers in Appendix B. For 

the year ended June 30, 2011, Bar Harbor, Plattsburgh, and Presque Isle averaged 37, 42, and 

47 enplanements a day, respectively.

At Bar Harbor, we note the seasonality of enplanements with the third quarter seeing a 

significant increase in passengers. During the July 1 – September 30, 2010, quarter, 

Bar Harbor generated more passengers than in the other nine months of the year combined, 

averaging 78 enplanements a day. For proposals with 30-34-seat aircraft, the Department 

expects two round trips each weekday and weekend (12 a week) year round. For proposals 

using 19-seat aircraft, we would expect proposals for two round trips each weekday and 

weekend (12 a week) in the off-peak season, and three or four round trips each weekday and 

weekend (18 or 24 a week) during the summer peak season. 

With respect to Plattsburgh, we expect proposals for two round trips each weekday and 

weekend (12 a week) using 30-34-seat aircraft, or three round trips each weekday and weekend 

(18 a week) using 19-seat aircraft. 

With respect to Presque Isle, under EAS statutes the community is guaranteed 67 seats per day 

in each direction, which would work out to be two round trips each day. However, due to the 

very long stage length to Boston and the resultant need to carry a full load of fuel, under IFR 

conditions Colgan’s Saab aircraft are limited to 28-31 seats (depending on direction). We 

therefore will accept proposals for 19 weekly round trips using 30-34-seat aircraft or 24 weekly 

round trips using 19-seat aircraft. 

As always, we will formally solicit the community’s views on any service options we receive 

before making a long-term carrier selection decision. 

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces and nondiscrimination.2 Consequently, all carriers receiving 

Federal subsidy to support 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. All carriers that plan 

to submit proposals involving subsidy should submit the required certifications along with their 

proposals. Interested carriers requiring more detailed information regarding these 

requirements, as well as copies of the certifications, should contact the Office of Aviation 

 2 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 (nonprocurement) and government-wide requirements for drug-free workplace (grants).
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Analysis at (202) 366-5903. The Department is prohibited from paying subsidy to carriers that 

do not submit these documents.3

Community and State Comments

Civic officials are welcome to submit comments on the proposals at any time. As noted earlier, 

we will provide a summary of the proposals to the civic parties and ask them to submit their 

final comments shortly after December 20, the due date for carrier proposals.

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

ACCORDINGLY,

1. We prohibit Colgan Air, Inc., operating as US Airways Express, from suspending service at

Bar Harbor and Presque Isle/Houlton, Maine, and Plattsburgh, New York, at the end of the 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 January 7, 2012, or until a carrier capable of 

providing reliable EAS actually begins service, whichever is first4; 

2. We request that carriers interested in providing essential air service at Bar Harbor and 

Presque Isle, Maine, and Plattsburgh, New York, submit their proposals, with or without 

subsidy requests, no later than December 20, 2011. The proposals should be emailed to: 

EAS@dot.gov with the title “Proposal to Provide Essential Air Service at Bar Harbor and 

Presque Isle, Maine, and Plattsburgh, New York”;5

 3 The certifications are also available on the web at http://ostpxweb.dot.gov/aviation/index.html.

4 In accordance with 49 U.S.C. 41734(c), we will extend Colgan Air’s service obligation for successive 30-day 

periods as necessary until replacement service actually begins.

5 Questions regarding filings in response to this order should be directed to Michael Martin at 202-366-6494, or 

via email at michael.f.martin@dot.gov.
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3. These dockets will remain open until further order of the Department; and

4. The Department will serve a copy of this order on the mayors and airport manager of Bar 

Harbor, Plattsburgh, Presque Isle, Colgan Air, Inc., and the service list for this Docket.

By:

SUSAN L. KURLAND

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available online at

www.regulations.gov
Appendix A

Area Map
APPENDIX B

Page 1 of 3

Historical Origin-Destination Plane Traffic1

Bar Harbor, Maine

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per Day

3 2008 4,979 5,270 10,249 65

4 2008 1,492 1,572 3,064 19

1 2009 686 715 1,401 9

2 2009 2,163 1,689 3,852 25

Annual 

Totals 9,320 9,246 18,566 30

3 2009 5,427 5,420 10,847 69

4 2009 1,692 1,793 3,485 22

1 2010 837 902 1,739 11

2 2010 2,664 2,294 4,958 32

Annual 

Totals 10,620 10,409 21,029 34

3 2010 6,166 6,172 12,338 78

4 2010 1,576 1,676 3,252 21

1 2011 1,041 1,095 2,136 14

2 2011 2,937 2,492 5,429 35

Annual 

Totals 11,720 11,435 23,155 37

 1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100.
APPENDIX B

Page 2 of 3

Historical Origin-Destination Plane Traffic1

Presque Isle/Houlton, Maine

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per Day

3 2008 3,656 3,721 7,377 47

4 2008 3,120 3,238 6,358 40

1 2009 2,786 2,829 5,615 36

2 2009 3,581 3,236 6,817 44

Annual 

Totals 13,143 13,024 26,167 42

3 2009 3,942 3,944 7,886 50

4 2009 3,169 3,291 6,460 41

1 2010 3,161 3,233 6,394 42

2 2010 3,721 3,567 7,288 47

Annual 

Totals 13,993 14,035 28,028 45

3 2010 4,302 4,354 8,656 55

4 2010 3,716 3,803 7,519 48

1 2011 3,097 3,304 6,401 42

2 2011 3,659 3,276 6,935 44

Annual 

Totals 14,774 14,737 29,511 47

 1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100.
APPENDIX B

Page 3 of 3

Historical Origin-Destination Plane Traffic1

Plattsburgh, New York

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per Day

3 2008 1,542 1,505 3,047 19

4 2008 1,133 1,117 2,250 14

1 2009 953 969 1,922 12

2 2009 1,319 1,321 2,640 17

Annual 

Totals 4,947 4,912 9,859 16

3 2009 1,611 1,564 3,175 20

4 2009 1,392 1,487 2,879 18

1 2010 1,287 1,340 2,627 17

2 2010 1,498 1,607 3,105 20

Annual 

Totals 5,788 5,998 11,786 19

3 2010 4,146 4,334 8,480 54

4 2010 3,572 3,617 7,189 46

1 2011 2,758 2,819 5,577 36

2 2011 2,574 2,561 5,135 33

Annual 

Totals 13,050 13,331 26,381 42

 1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100 for Cape 

Air and Colgan. 
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 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 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.

Funds are not currently available for performance under this solicitation beyond [DATE]. The 

Department’s obligation for performance under this solicitation beyond [DATE], is contingent 

upon the availability of appropriated funds from which payment for services can be made. No 

legal liability on the part of the Government for any payment may arise for performance under 

this order beyond [DATE], until funds are made available to the Department for performance. If 

funds are not made available for performance beyond [DATE], the carrier will receive notice in 

writing by the Department.

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

under this order.
APPENDIX D

Essential Air Service to be Maintained at Bar Harbor, Maine

Effective Period: December 8, 2011, until further Department action

Scheduled Service: 14 weekly nonstop round trips between Bar Harbor and Boston

Aircraft: 34-seat Saab 340

Essential Air Service to be Maintained at Presque Isle/Houlton, Maine

Effective Period: December 8, 2011, until further Department action

Scheduled Service: 19 weekly nonstop round trips between Presque Isle/Houlton and Boston

Aircraft: Saab 340

Essential Air Service to be Maintained at Plattsburgh, New York

Effective Period: December 8, 2011, until further Department action

Scheduled Service: 12 weekly nonstop round trips between Plattsburgh and Boston

Aircraft: 34-seat Saab 340