Order 2010

- 5

- 2 Served: May 3, 2010



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 3 rd day of May, 2010

Essential Air Service at

GREENVILLE

, MISSISSIPPI

Under 49 U.S.C. 41 731 et seq

. DOCKET OST

- 200 8

- 0 209

ORDER REQUESTING PROPOSALS Summary By this order, the Department is requesting proposals by June 3

, 2010

, from carriers interested in providing essential air service (EAS) at Greenville

, Mississippi

, for a new

two

- ye ar period, beginning October 1 , 2010

, with or without subsidy.

Background By Order 2008

- 8

- 23

, August 25 , 200 8 , the Department selected Mesaba Airlines, Inc.,

d/b/a Delta Connection (Mesaba), 1 to provide subsidized EAS to Greenville

, Mississippi

, through September 30 , 2010

. Under that order, the Department authorized subsidy for

Mesaba consisting of fourteen nonstop round trips per week year round to Memphis

, Tennessee

. All of the service was to be with 34

- seat Saab 340 aircraft for an annual subsidy

of $1,355,693

.

Request for Proposals

As the end of the current rate term s approach, we are here by requesting proposals from carriers interested in providing service at Greenville

, with or without subsidy, for the

two

- year period beginning October 1 , 2010

. Carriers should file their proposals by

June 3

. S taff will then docket proposals, thereby making them public, and direct each carrier to serve a copy of its proposal on the civic parties and other applicants. Shortly afterwards, we will provide a summa ry of the proposals to the community and S tate and

as k them to submit their final comments. We will give full consideration to all proposals filed in a timely manner. 2

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

1 Mesaba at the time operated as Northwest Airlink. Delta and Northwest have since merged, and Mesaba, a wholly

- owned subsidiary of Delta, operates as Delta Connection.

2 Carrie rs should not expect the Department to accept late filings. In cases where a carrier proposes to provide essential air service without subsidy and we determine that service can be reliably provided without such compensation, we do not proceed with the car rier

- selection case. Instead, we simply rely on that carrier’s subsidy

- free service as proposed.- 2

-

outright all unreasonable or unrealistic proposals and , if ne cessary, solicit a new round of proposals. However, we anticipate that negotiation or rejection will remain only occasional exceptions to the rule.

We are here providing interested carriers with some basic information to serve as guidance when they prepa re 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, 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 prop osals that will facilitate their evaluation by the affected community and the Department. We do not anticipate any change in our selection criteria, or in the general provisions governing subsidy payments for essential air service. 3

With specific respe ct to Greenville , we expect proposals consisting of two round trips a day ( 14 pe r week) with 34

- seat or larger aircraft, three round trips a day (18 per week)

with 30

- seat aircraft, or four round trips a day (24 a week) with 19

- seat aircraft . Service

sh ou ld be to Memphis or any other suitable hubs with connections to the national air transportation system. If aircraft with fewer than 15 passenger seats are contemplated, service patterns should consist of nonstop service between the community and the

propo sed hub airport.

S ervice should be with two

- pilot, twin

- engine aircraft, with at least 15 passenger seats

, unless the community waives their right to those standards . In that event, we would also consider proposals for five round trips a day with eight

- or nine

- seat aircraft. If such a proposal is submitted and the community waives their right and ultimately supports the service, we would consider the waiver to apply only to the two

- year carrier

- selection at hand, i.e., rather than for all time. As al ways, we will formally solicit the community’s views on any service options we receive before making a long

- term carrier

- selection decision. 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 both desirable to the community and meets the operation al needs of the airline.

We encourage proposals that meet th e se requirements in an efficient manner. As we have mentioned, c arriers are welcome to propose more than one servi ce option, if they choose; they need not limit themselves to those requirements if they envision other, potentially more attractive service possibilities

– different hubs, for example

– with subsidy requirements that remain competitive.

3 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 s electing 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 gover ning 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- 3

-

We encourage carri ers to work with the communit y as they are preparing their proposals so that they can craft them to best meet the communit y ’ s needs. As always, we will fully

consider the community ’ s views before making a long

- term carrier

- selection decision.

Historica l Traffic In order to assist carriers in making their traffic and revenue projections, we have

included historical traffic for the community in Appendix B

. During 2009, Greenville generated an average of 17 enplanements per day.

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

- free workplaces and nondiscrimination. 4 Consequently, all carriers receiving Federal subsidy to support essential air service must certify that t hey 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 gov erning 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 a s copies of the certifications, should contact the Office of Aviation Analysis at (202) 366

- 5903 . The Department is prohibited from paying subsidy to carriers that do not submit these

documents.

Community Comments

Civic officials and the State are welcom e 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 June 3 , the due date for carrier proposals.

This order is issue d under authority delegated in 49 CFR 1.56a(f) and re

- delegated to the

Directo r, Office of Aviation Analysis.

ACCORDINGLY,

1. The Department requests proposals from carriers interested in providing essential air

service at Greenville

, Mississippi

. Carri ers should submit their proposals, with subsidy if necessary, by June 3

, 2010 . Proposals should include all the data required by section 204.4 of the Department’s Regulations (14 CFR 204.4). Proposals should be emailed to EAS@dot.gov, with the title “Pro posal to Provide Essential Air Service at Greenville

, Mississippi , Docket DOT

- OST

- 200 8

- 0 209

. ” Questions regarding filings may be directed

to Kevin Adams at 202

- 366

- 1047 or Kevin.Adams@dot.gov ;

2

. Th is D ocket will remain open until further order of the D epartment; and

4 The certifications are also available on the web at http://ostpxweb.dot.gov/aviation/index.html.- 4

-

3 . We will serve this order on the s ervice l ist for th ese Docket s

.

Persons entitled to petition the Department for review of this order under the Department’s Regulations, 14 CFR 385.50, must file such petitions within ten (10) 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 on the World Wide Web at http://www.regulations.govAppendix A

Nonstop, Great Circle Miles from Greenville ( GLH )

Altanta

, ATL 378 Memphis, MEM 122 New Orleans, MSY 245

Jacks on , JAN 97 Birmingham , BHM 244 Columbus, GTR 138 Hattiesburg, PIB 169

This map is provided by Sabre ® AirVision TM Profit Essentials and is being used with express permission of the copyright holder, Sabre Airline Solutions®.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 fligh t; 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 i ts 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 provid e 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 dis allowed, 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, termin ates 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 lev els, 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

stat utes, 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 a re 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 s ervice provided under this order.Appendix D Page 1 of 2

Distribution List

Air Sunshine, Inc.
Air Sunshine, Mirmohammad Adili
Air West, Inc., John Raatz
Air Wisconsin, Annette Daly
Airline Associates, Bill Mishk
Alaska Airlines, Jeff Cole
Alaska Airlines, Sandy Sinick

A llegiant Air, Robert Ashscroft

American Airlines, Carl Nelson
American Eagle, Jeffrey Hartz
Atlantic Southeast, Jon Lindlief
Atlantic Southeast, Roger Weston
Bemidji Aviation, Cori Rude
Bemidji Aviation, Arlen Rinkenberger
Cape Air, Andrew Bonne y Cape Air, Dan Wolf
Cape Air, J.Flaherty
Classic Aviation, Tony Henderson
Colgan Air, Mike Colgan
CommutAir, Andy Price
CommutAir, Joel Raymond
Consultant, Robert Silverberg
Continental, Bruce Keiner
Continental, Dan Weiss
Continental, Lorry Halloway
Delta, Amy Martin

Delta, Dan Shuman
Delta, Jeff Morgan
Delta, Joe Esposito
Delta, Karen Zachary
Delta, Sascha Vanderbellen

Dorato Jets
Dorato Jets, Mark McKenna
Era Aviation, Mike Lenorman

Executive Airlines, Kate Soled
Frontier Fly ing, Bob Hajducovich
Gem Air, Dan Schroeder
Gem Air, JoAnn Wolters
Great Lakes, Chuck Howell
Great Lakes, Doug Voss
Great Lakes, Greg Stephens
Gulfstream, Dave Hackett
Gulfstream, Mickey Bowman
Gulfstream, T. Cooper
Homeland Security, Bill Ragan
Homeland Security, David Bernier
Horizon Airlines, Dan Russo
Horizon Airlines, Jennifer Thompson
Horizon, Jeff Cole

ICEPR, Luis Irizarry
Intrepid Interntl Air, Rick Eyk
Island Air Charters, Linda House
Jet Air, Daniel WolfordAppendix D Page 2 of 2

Kenmore Air, Tim Br ooks
McCall Aviation and Salmon Air, Dan Scott

McCall Aviation, Michelle
Mesa Air, Jonathan Ornstein
Mesa Air, Michael Lotz
Mesa Air, Mike Holcomb
Mesaba, John Spanjers
Mesaba, Max Shemesh
Midstar Airlines, Jeffrey Fonner
Midwest Airlines, Greg Aretakis
MN Aviation, Jose Maldonado
Multi Aero, Darnea
Multi Aero, Shane Storz
Northwest, Tim McDonald
NYDC, Henok Araya

OST, Brian Swanson
OST, Dennis DeVany
OST, Kevin Adams
OST, Kevin Schlemmer
OST, Michael Martin
OST, Renee Williams

Pa cific Wings, Frank Ford
Pacific Wings, Greg Kahlstorf
PenAir, Danny Seybert
PenAir, Scott Bloomquist
Pinnacle Airlines, Joe Williams
Pinnacle Airlines, Phil Reed
Planemasters, Inc., John Kessler
Planemasters, Inc., Paul Berliner
Public Charters, J im Gallagher
Scenic, Mary Schneider
Seaborne Airlines, Wayne D'Amico
SeaPort Airlines, Jim Day
SeaPort Airlines, Rob McKinney
SeaPort, Daniel Helland
Shuttle America, Jerry Balsano
SkyWest, Eric Christensen
SkyWest, Michael Thompson

Sovereign Ai r, Bob Karns

Sovereign Air, Lois R. Barton
Tradewind, Eric Zipkin
TransStates, Fred Oxley

Transtates, Gerry Wigmore
United, Alicia Gabriel

United, James Starnes
US Airways, Benjamin Slocum
US Airways, Howard Kass

US Airways, Jason Reisinger

Wa rbelows Air Ventures, Art Warbelow
Wings Air (Air Greco), Aaron Goerlich