Order: 2014-4-26 Served: April 24, 2014



### UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 24 th day of April, 2014

Essential Air Service at

ATHENS, GEORGIA BRADFORD, PENNSYLVANIA EL CENTRO, CALIFORNIA FORT DODGE, IOWA FRANKLIN/OIL CITY, PENNSYLVANIA GREENVILLE, MISSISSIPPI HAGERSTOWN, MARYLAND JACKSON, TENNESSEE LANCASTER, PENNSYLVANIA KINGMAN, ARIZONA MACON, GEORGIA MERCED, CALIFORNIA MUSCLE SHOALS, ALABAMA

Under 49 U.S.C. 41731 et seq

. Docket DOT-OST-2002-11348
Docket DOT-OST-2003-14528
Docket DOT-OST-2008-0299
Docket DOT-OST-2001-10682
Docket DOT-OST-1997-2523
Docket DOT-OST-2008-0209
Docket DOT-OST-2006-25228
Docket DOT-OST-2000-7857
Docket DOT-OST-2002-11450
Docket DOT-OST-1996-1899
Docket DOT-OST-2007-28671
Docket DOT-OST-1998-3521
Docket DOT-OST-2000-7856

TENTATIVE ORDER REGARDING TERMI NATION OF EAS ELIGIBILITY

Summary By this Order, the Department is directing interested persons to show cause as to why the Department should not terminate the eligibility of the communities cap tioned above under the Essential Air Service (EAS) program based on criteria passed by Congress in the FAA Modernization and Reform Act of 2012 (Pub lic Law No. 112-95). Objections to the Department’s tentative decision are due within 20 days of the service date of this Order.

Recent Developments in Congre ssional Eligibility Criterion

The FAA Modernization and Reform Act of 2012 amended 49 U.S.C. § 41731(a)(1)(B) to change the definition of “eligible place” for the purpose of receiving EAS. The amendment states that to be eligible, a co mmunity must maintain an average of 10 enplanements or more per service day, as determined by the Secretary, durin g the most recent fiscal year beginning after- 2 -

September 30, 2012. The legislation exempts loca tions in Alaska and Hawaii and communities that are more than 175 driving miles from the nearest large or medium hub airport. 1 The Secretary also has the authority to waive the 10 -enplanement standard, on an annual basis, if the community can demonstrate that the reason the location averages fewer than 10 enplanements per day is due to a temporary decline in enplanements. 2

Methodology and Enplanement History The purpose of this Order is to apply the new el igibility criteria to those communities that are currently receiving subsidized EAS, except for those communities in Alaska, Hawaii, or more than 175 miles from the nearest large or medium hub airport. Regarding the mileage standard, we have measured the shortest driving distan ce from the center of the EAS community to the beginning of the airport property of th e nearest medium- or large-hub airport. 3 In calculating enplanements per day, we have taken total annua l origin and destination passenger numbers for fiscal year 2013. We then divided by two to ge t passengers in one direc tion (enplanements at the EAS community), and then by 313 days to ge t average daily enplanements at the EAS community. We do not use 365 days in our calc ulation because we typically subsidize the equivalent of six-day-a-week service. 4

We also want to make clear that this is not a one-time exercise. Rather, as data become available in the future, we will apply the new data to th e then-subsidized communities on an annual basis. For example, if a community w ithin 175 miles of a medium- or large-hub airport currently averages 11 enplanements a day but that level dips to 9 a day based on the most recent fiscal year data at that time, that community could lose its EAS eligibility. Similarly, if a community enplaning five passengers a day is currently mo re than 175 miles from the nearest large or

medium hub but a small hub within 175 miles grows to medium-hub status, that community could also lose its EAS eligibility.

Decision After careful consideration of this matter, the De partment has tentatively decided to terminate the eligibility of the communities discussed in this Order.

We will briefly discuss each of the affected communities below, and the data are summarized in Appendix A.

ATHENS

We find that Athens is within 175 miles of a large or medium hub, Hart sfield-Jackson Atlanta International Airport (ATL), a la rge hub, and, thus, is subject to the 10-enplanement statutory

1 See 49 U.S.C. § 41731(c) and (d).

2 See 49 U.S.C. § 41731(e).

3 The mileage standard is consistent with longstanding and current Department practice. See 54 Fed. Reg. 52766 (December 22, 1989) (amending 14 CFR Part 398).

4 For example, we typically subsidize two round trips a day Monday through Friday and two round trips over the weekend (12 round trips a week) or th ree round trips each weekday and over the weekend (18 a week). Using 313 days (52 weeks x 6 days = 312 + one day = 313), instead of 365 days, has the effect of raising the average daily enplanements by 17%.- 3 -

criterion. We also find that dur ing fiscal year 2013, Athens ge nerated a total of 3,681 passengers (inbound plus outbound). Consistent with the me thodology described above, that results in an average of 5.9 enplanements per day, below the 10-enplanement statutory criterion necessary to remain eligible in the EAS program.

BRADFORD

We find that Bradford is within 175 miles of a large or medium hub, Buffalo Niagara International Airport (BUF), a medium hub, and, t hus, is subject to the 10-enplanement statutory criterion. We also find that during fiscal year 2013, Bradford ge nerated a total of 4,292 passengers (inbound plus outbound). Consistent with the methodol ogy described above, that results in an average of 6.9 enplanements per day, below the 10-enplanem ent statutory criterion necessary to remain eligible in the EAS program.

EL CENTRO

We find that El Centro is within 175 miles of a large or medium hub, San Diego International Airport (SAN), a large hub, and, t hus, is subject to the 10-enplan ement statutory criterion. We also find that during fiscal year 2013, El Centro generate d a total of 5,950 passengers (inbound plus outbound). Consistent with the methodology described above, th at results in an average of 9.5 enplanements per day, below the 10-enplanemen t statutory criterion necessary to remain eligible in the EAS program.

FORT DODGE We find that Fort Dodge is within 175 miles of a large or medium hub, Omaha Airport-Eppley Airfield (OMA), a medium hub, and, thus, is subj ect to the 10-enplanemen t statutory criterion. We also find that during fis cal year 2013, Fort Dodge gene rated a total of 5,868 passengers (inbound plus outbound). Consistent with the me thodology described above, that results in an average of 9.4 enplanements per day, below the 10-enplanement statutory criterion necessary to remain eligible in the EAS program.

FRANKLIN/OIL CITY We find that Franklin/Oil City is within 175 miles of a large or medium hub, Pittsburgh International Airport (PIT), a medium hub, and, t hus, is subject to the 10-enplanement statutory

criterion. We also find that dur ing fiscal year 2013, Franklin/O il City generated a total of 3,134 passengers (inbound plus outbound). Consistent with the methodol ogy described above, that results in an average of 5.0 enplanements per day, below the 10-enplanem ent statutory criterion necessary to remain eligible in the EAS program.

GREENVILLE

We find that Greenville is within 175 miles of a large or medium hub, Memphis International Airport (MEM), a medium hub, and, thus, is subject to the 10-enplanement statutory criterion. We also find that during fis cal year 2013, Greenville generated a total of 5,836 passengers (inbound plus outbound). Consistent with the me thodology described above, that results in an average of 9.3 enplanements per day, below the 10-enplanement statutory criterion necessary to remain eligible in the EAS program.- 4 -

HAGERSTOWN We find that Hagerstown is within 175 m iles of a large or medium hub, Washington Dulles International Airport (IAD), a la rge hub, and, thus, is subject to the 10-enplanement statutory criterion. We also find that during fiscal year 2013, Hagerstown ge nerated a total of 2,419 passengers (inbound plus outbound). Consistent with the methodol ogy described above, that results in an average of 3.9 enplanements per day, below the 10-enplanem ent statutory criterion necessary to remain eligible in the EAS program.

JACKSON

We find that Jackson is within 175 miles of a large or medium hub, Memphis International Airport (MEM), a medium hub, and, thus, is subject to the 10-enplanement statutory criterion. We also find that during fis cal year 2013, Jackson generate d a total of 4,865 passengers (inbound plus outbound). Consistent with the methodology described above, th at results in an average of 7.8 enplanements per day, below the 10-enplanemen t statutory criterion necessary to remain eligible in the EAS program.

LANCASTER

We find that Lancaster is within 175 miles of a large or medium hub, Philadelphia International Airport (PHL), a large hub, and, t hus, is subject to the 10-enplan ement statutory criterion. We also find that during fiscal year 2013, Lancas ter generated a total of 3,943 passengers (inbound plus outbound). Consistent with the methodology described above, th at results in an average of 6.3 enplanements per day, below the 10-enplanemen t statutory criterion necessary to remain eligible in the EAS program.

KINGMAN We find that Kingman is within 175 miles of a large or medium hub, McCarran International Airport in Las Vegas (LAS), a large hub, and, thus , is subject to the 10-enplanement statutory criterion. We also find that during fiscal year 2013, Kingman ge nerated a total of 1,661 passengers (inbound plus outbound). Consistent with the methodol ogy described above, that results in an average of 2.7 enplanements per day, below the 10-enplanem ent statutory criterion necessary to remain eligible in the EAS program.

MACON

We find that Macon is within 175 miles of a large or medium hub, Hart sfield-Jackson Atlanta International Airport (ATL), a la rge hub, and, thus, is subject to the 10-enplanement statutory criterion. We also find that during fiscal ye ar 2013, Macon generated a total of 2,482 passengers (inbound plus outbound). Consistent with the me thodology described above, that results in an average of 4.0 enplanements per day, below the 10-enplanement statutory criterion necessary to remain eligible in the EAS program.

MERCED

We find that Merced is within 175 miles of a la rge or medium hub, Mineta San Jose International Airport (SJC), a medium hub, and, thus, is subject to the 10-enplanement st atutory criterion. We also find that during fiscal year 2013, Mer ced generated a total of 4,810 passengers (inbound plus outbound). Consistent with the methodology described above, th at results in an average of- 5 -

7.7 enplanements per day, below the 10-enplanemen t statutory criterion necessary to remain eligible in the EAS program.

MUSCLE SHOALS

We find that Muscle Shoals is within 175 miles of a large or medium hub, Nashville International Airport (BNA), a medium hub, and, thus , is subject to the 10-enplanement statutory criterion. We also find that during fiscal ye ar 2013, Muscle Shoals generated a total of 3,973 passengers (inbound plus outbound). Consistent with the methodol ogy described above, that results in an average of 6.3 enplanements per day, below the 10-enplanem ent statutory criterion necessary to remain eligible in the EAS program.

We hereby require the incumbent carriers to prov ide EAS at the communities until further notice, which will be included in the Department’s Fina l Order on this matter. Carriers that fail to continue providing EAS at their respective communities may be referred to the Office of Aviation Enforcement and Proceedings for appropriate handling. This Order does not preclude carriers from starting or continuing air serv ice at these communiti es without subsidy.

We will give interested persons 20 days after the service date of this Order to submit objections. Objections should be fully documented and contai n complete information on the data used by the persons objecting. If we later finalize the te ntative findings in a subsequent Order, the Department would make that Order effective 30-45 days afte r its service date. In that event, if a specific carrier providing EAS at one of the a ffected communities decides to suspend service upon the effective date, we will expect it to co ntact all passengers who hold reservations for flights that will be suspended to inform them of the suspension and assist them in arranging alternative transportation or to pr ovide a refund of the ticket price, without penalty, if requested.

If the Department finalizes its tentative findings for any of the communities captioned above in a subsequent Order, those communities will have an opportunity to petition for a waiver based on 49 U.S.C. § 41731(e), which states that “For fiscal year 2013 and each fiscal year thereafter, the Secretary may waive, on an annual basis, subsect ion (a)(1)(B) with respec t to a location if the

location demonstrates to the Secr etary’s satisfaction that the r eason the location averages fewer than 10 enplanements per day is due to a tempor ary decline in enplanements.” The process for filing such a waiver will be addres sed in the subsequent Order.

This Order is issued under authorit y delegated in 49 CFR Part 1.25a(b).

ACCORDINGLY,

1. The Department tentatively finds that the 13 communities captioned on page 1 of this Order are no longer eligible EAS communities;

2. The Department directs all in terested persons to show cause w ithin 20 days of the date of service of this Order why we should not make final the tentative findings and conclusions set forth above. Objections shoul d be filed electronically to EAS@dot.gov, or by FAX at 202-366- 7638;- 6 -

3. The Department requires carriers providing EAS under the Orders identified herein to provide the level of EAS set by the Orders listed in A ppendix B at the communities named in this Order until further notice;

4. We will afford full consideration to the matters and issues raised in any timely and properly filed objections before we take further action;

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

6. The Department will serve copies of this Order on the mayors, civic, and airport officials at

the communities named above.

By:

SUSAN L. KURLAND Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available at http://www.regulations.govAppendix A

YE 9/30/13 YE 9/30/13 Nearest Approx. Nearest Approx.

Passenger Enplanements Large Miles to Medium Miles to

State EAS Community Carrier serving Totals* Per Day Hub L-Hub Hub M-Hub

Arizona Kingman Great Lakes 1,661 2.7 LAS 121 n/a
Maryland Hagerstown Sun Air 2,419 3.9 IAD 78 n/a
Georgia Macon Silver Airways 2,482 4.0 ATL 82 n/a
Pennsylvania Franklin/Oil City Silver Airways 3,134 5.0 n/a PIT 85
Georgia Athens SeaPort 3,681 5.9 ATL 72 n/a
Pennsylvania Lancaster Sun Air 3,943 6.3 PHL 86 n/a

Alabama Muscle Shoals Silver Airways 3,973 6.3 n/a BNA 122
Pennsylvania Bradford Silver Airways 4,292 6.9 n/a BUF 77

California Merced Great Lakes 4,810 7.7 n/a SJC 107

Tennessee Jackson SeaPort 4,865 7.8 n/a MEM 86
Mississippi Greenville Silver Airways 5,836 9.3 n/a MEM 154

Iowa Fort Dodge Great Lakes/suspended 5,868 9.4 n/a OMA 156

California El Centro SeaPort 5,950 9.5 SAN 114 n/a

* Enplanements and deplanementsAppendix B

ORDERS OUTLINING SERVICE TO BE PROVIDED

EAS Community Order(s)
ATHENS, GEORGIA 2012-9-27
BRADFORD, PENNSYLVANIA 2012-9-23
EL CENTRO, CALIFORNIA 2013-1-2 and 2013-4-3
FORT DODGE, IOWA* 2011-11-30
FRANKLIN/OIL CITY, PENNSYLVANIA 2012-9-23
GREENVILLE, MISSISSIPPI 2012-5-17
HAGERSTOWN, MARYLAND 2012-8-9
JACKSON, TENNESSEE 2014-1-23
LANCASTER, PENNSYLVANIA 2012-8-9
KINGMAN, ARIZONA 2013-6-1
MACON, GEORGIA 2013-2-26
MERCED, CALIFORNIA 2012-9-9
MUSCLE SHOALS, ALABAMA 2012-5-17

*Great Lakes' service is currently suspended