Order: 2012-9-23

 Served: September 27, 2012

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 27th of September, 2012

Essential Air Service at

BRADFORD, PENNSYLVANIA

DuBOIS, PENNSYLVANIA

FRANKLIN/OIL CITY, PENNSYLVANIA

JAMESTOWN, NEW YORK

PARKERSBURG, WEST VIRGINIA/

 MARIETTA, OHIO

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

 Docket DOT-OST-2003-14528

 Docket DOT-OST-2004-17617

 Docket DOT-OST-1997-2523

 Docket DOT-OST-2003-14950

 Docket DOT-OST-2005-20734

ORDER SELECTING CARRIER

Summary

By this Order, the Department is selecting Silver Airways (“Silver”) to provide Essential Air 

Service (EAS) at Bradford, DuBois, Franklin/Oil City (“Franklin”), Pennsylvania, Jamestown, 

New York, and Parkersburg, West Virginia/Marietta, Ohio (“Parkersburg”), for a combined 

annual subsidy of $10,348,117 ($1,940,272 for Bradford; $2,587,029 for DuBois, $1,293,515 for 

Franklin, $1,940,272 for Jamestown, and $2,587,029 for Parkersburg), from October 1, 2012, 

through September 30, 2014.1

Background

By a series of Orders,2 the Department selected Gulfstream International Airlines, which was 

renamed Silver Airways in December 2011, to provide subsidized EAS at Bradford, DuBois, 

Franklin, Jamestown, and Parkersburg, for the two-year period from October 1, 2010, through 

September 30, 2012. The annual subsidy amounts are as follows: Bradford ($1,087,306), 

DuBois ($2,228,996), Franklin ($915,101), Jamestown ($1,639,254), and Parkersburg 

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds.

2 Order 2010-6-25, June 29, 2010 (Parkersburg); and Order 2010-9-12, September 9, 2010 (Bradford, DuBois, 

Franklin, and Jamestown). 
- 2 -

($2,642,237). Silver began service to Parkersburg on October 1, 2010, thus making all the 

contracts expire on September 30, 2012. Silver operates its service with 19-passenger Beech 

1900 aircraft to Cleveland Hopkins International Airport under a code-share agreement with 

United Airlines.

In anticipation of the current contract on September 30, 2012, by Order 2012-5-12, May 9, 2012, 

the Department solicited proposals from all interested air carriers to provide service at any or all

five communities,3 for a new term beginning October 1, 2012. Proposals for service were due 

June 7, 2012, but Silver requested two extensions. The second extension revised the due date to 

June 29, 2012.

In response to that Order, we received proposals from Silver, the incumbent, and 

TransportAzumah. Copies of both proposals may be accessed via www.regulations.gov.

Proposal from Silver Airways

Silver proposes to continue its status-quo service operating to Cleveland Hopkins International 

Airport (CLE) at all five communities: four nonstop or one-stop round trips at DuBois (24 per 

week), four nonstop round trips at Parkersburg (24 per week), three nonstop or one-stop round 

trips at Bradford and Jamestown (18 per week each), and two nonstop or one-stop trips at 

Franklin (12 per week) for a combined annual subsidy of $13,267,470, over a two-year term.

Service would utilize Beech 1900D turboprop aircraft and would continue to operate under a 

code-share agreement with United Airlines. Silver proposes this service as “all-or-nothing” with 

the award of all five cities required. Silver requested the ability to suspend service after 120 

days’ notice.

Proposal from TransportAzumah

TransportAzumah proposes ground transportation options for Bradford, Jamestown, DuBois, and 

Franklin, utilizing a passenger bus at no cost to passengers. Bradford would receive three daily 

round trips and Jamestown would receive four daily round trips to Buffalo Niagara International 

Airport (BUF) for annual subsidy amounts of $832,000, and $876,000, respectively. DuBois 

would receive four daily round trips and Franklin would receive three daily round trips to 

Pittsburgh International Airport (PIT) for annual subsidy amounts of $1,226,400, and $814,680, 

respectively.

Community and State Comments

On July 11, 2012, we requested community comments regarding the carrier selection at the five 

communities.

Bradford

The airport director at Bradford Regional Airport wrote to the Department and stated his support 

for the proposal for Silver. He states that the community will work with Silver to mitigate its 

financial risk and he strongly recommends discussions between all stakeholders before Silver 

would suspend service under the carriers’ 120-day out clause.

 3 Proposals for Kirksville, Missouri, were also solicited in that Order, but they were dealt with in a separate Order. 
- 3 -

DuBois

The Chairman of Clearfield-Jefferson Counties Regional Airport Authority wrote a letter 

offering his support for Silver. He cites Silver’s excellent service and on-time performances as 

reasons that have brought back passengers to the airport.

Franklin

In a July 13, 2012 letter, the manager of Venango Regional Airport stated that the airport 

supports the proposal submitted by Silver Airways. He says, “[the] air carrier has provided 

service since September 2008 and has performed reasonably well.” Further, he explains that 

service through the Cleveland hub offers the most efficient and realistic connection between the 

regional and the national air transportation system. In the context of the subsidy per passenger, 

the community and airport are working with Silver to reduce its financial risk wherever possible. 

Additionally, he notes that Silver has requested the ability to suspend service on 120 days’ 

notice, but strongly suggests that there be discussions between Silver, the airport, the 

community, and DOT prior to the approval of any suspension of service.

Parkersburg

The president of the Mid Ohio Valley Regional Airport Authority stated his support for Silver in 

an August 1, 2012 letter to the Department. He states that Silver’s four daily flights with 19-

passenger aircraft give the airport true passenger growth potential and continue the service its 

users have come to expect. Further, he states that Silver’s request to waive the right to hold-in 

Silver Airways upon issuance of a 120 day notice to terminate service would set a bad precedent 

and pose a significant threat to the EAS program, “we feel compelled to agree with it in order to 

have any air service at all.” 

We received no comments from the community of Jamestown.

Decision

All of the responding communities fully support the selection of Silver as their carrier, and 

Silver has provided reliable subsidized EAS to all five communities for the past several years. 

Furthermore, the proposed service to Cleveland will continue to provide the communities with 

access to the national air transportation system.

Regarding TransportAzumah, it proposes ground transportation, which was not responsive to the 

Department’s request for proposal for air service. Moreover, the community is entitled by statute 

to air service.

Silver’s proposal requested that the Department exempt it from the hold-in requirement under 49 

U.S.C. § 41734(b), although it proposes to provide 120 days’ notice before suspending service, 

30 more days than is required under the EAS statute. Only one community, Parkersburg, agrees 

with this exemption, although it was not enthusiastic about it. Bradford and Franklin 

acknowledged Silver’s request in their support letters, but requested that discussions occur 

between all interested parties prior to suspension of service. DuBois and Jamestown did not 

address the issue. 
- 4 -

In response to the communities’ concerns regarding the 120-day provision, the EAS staff 

contacted Silver to discuss the issue. Based on those discussions, on September 26, 2012, Silver 

submitted a letter saying that it was withdrawing that stipulation from its proposal.

While we are concerned with the increase in subsidy over the current rate, we find the requested 

subsidy reasonable for the service proposed. Thus, we select Silver to provide EAS at the five

communities for a combined annual subsidy of $10,348,117 ($1,940,272 for Bradford; 

$2,587,029 for DuBois, $1,293,515 for Franklin, $1,940,272 for Jamestown, and $2,587,029 for 

Parkersburg), from October 1, 2012, through September 30, 2014.

We shall make Silver’s selection at Bradford, DuBois, Franklin, Jamestown, and Parkersburg

contingent upon the Department’s receiving properly executed certifications from Silver that it is

in compliance with the Department’s regulations regarding drug-free workplaces and 

nondiscrimination, as well as the regulations governing lobbying activities.

Recent legislative Changes That May Affect Future EAS Eligibility

The Federal Aviation Administration (FAA) Modernization and Reform Act of 2012 (Public 

Law No: 112-95) 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 community 

must maintain an average of 10 enplanements or more per service day, as determined by the 

Secretary, during the most recent fiscal year beginning after September 30, 2012.4 The 

legislation exempts locations in Alaska and Hawaii and communities that are more than 175 

driving miles from the nearest large or medium hub airport. All five communities are within 175 

miles from the nearest hub airport – DuBois and Franklin/Oil City are 112 miles and 85 miles, 

respectively, from Pittsburgh International Airport (PIT). Bradford and Jamestown are 77 miles 

and 76 miles, respectively, from Cleveland Hopkins International Airport (CLE). Parkersburg is 

110 miles from Port Columbus International Airport (CMH). CLE, CMH, and PIT are medium 

hub airports.

Thus, all five communities must meet the 10-enplanement-a-day threshold for EAS to continue 

after FY2013, barring a waiver from the Secretary. 

In the most recent fiscal year for which data are available, April 1, 2011, through March 31, 

2012, Silver generated passenger totals (inbound and outbound) as follows: 5,014 at Bradford; 

11,587 at DuBois; 2,581 at Franklin, 6,706 at Jamestown; and 15,038 at Parkersburg, or an 

average of 8.0 enplanements per day at Bradford, 18.5 at DuBois, 4.1 at Franklin, 10.7 at 

Jamestown, and 24.0 at Parkersburg.5 Using these data, Bradford and Franklin have fewer than 

10 enplanements per day and Jamestown is just over 10 at 10.7. Silver and the communities, 

particularly Bradford and Franklin, must attract additional passengers, thus increasing 

enplanements to meet the 10 enplanements per day statutory requirement in order for them to 

remain eligible to continue receiving EAS after FY2013, i.e. after September 30, 2013.

 4 The Secretary also has authority to waive the 10-passenger requirement, on an annual basis, if the community can 

demonstrate that the reason the location averages fewer than 10 passengers per day is due to a temporary decline in 

enplanements. See 49 U.S.C. §41731(e).

5 313 service days annually
- 5 -

In addition, Public Law 112-27, signed into law on August 5, 2011, amended the definition of 

“eligible place” for the purpose of receiving EAS. Among other things, the amendment states 

that to be eligible, a community must have had an average subsidy per passenger of less than 

$1,000 during the most recent fiscal year. 

Silver and the communities should be aware that the Department will continue to monitor their 

eligibility to receive subsidized EAS in light of these new requirements throughout the life of 

this contract. The Department may cancel a contract for any community receiving EAS if 

enplanements remain below 10 per day during FY2013.

Furthermore, all five communities are subject to the $200 per passenger cap and should 

maximize traffic to avoid possible termination from receiving subsidized EAS.6 The Department 

fully expects that the communities and Silver will work together to ensure that the subsidy per 

passenger is below $200.

Carrier Fitness

49 U.S.C. §§ 41737(b)and 41738 requires that we find an air carrier fit, willing, and able to 

provide reliable service before we may subsidize it to provide essential air service. Silver is

subject to the Department’s continuing fitness requirements, and no information has come to our

attention that would cause us to question either carrier's fitness at this time. We have contacted 

the Federal Aviation Administration, and it has raised no concerns that would negatively affect 

our fitness finding. We therefore conclude that the carriers remain fit to conduct the operations 

proposed here.

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

ACCORDINGLY,

1. We select Silver Airways, to provide Essential Air Service at Bradford, DuBois, Franklin/Oil 

City, Pennsylvania; Jamestown, New York; and Parkersburg, West Virginia/Marietta, Ohio;

2. We set the final rate of compensation for Silver Airways, for the provision of Essential Air 

Service at Bradford, DuBois, and Franklin/Oil City, Pennsylvania; Jamestown, New York; and 

Parkersburg, West Virginia/Marietta, Ohio, as described in Appendix C;

3. We direct Silver Airways to retain all books, records, and other source and summary 

documentation to support claims for payment, and to preserve and maintain such documentation 

in a manner that readily permits its audit and examination by representatives of the Department. 

Such documentation shall be retained for seven years from the service date of this Order or until 

the Department indicates that the records may be destroyed, whichever comes first. Copies of 

 6 Congress first established the $200 ceiling under P.L. 101-164 for fiscal year 1990, and reestablished it in fiscal 

years 1994-1999. The ceiling was made permanent by P.L. 106-69, the Department of Transportation and Related 

Agencies Appropriations Act of 2000. The Department is prohibited from paying subsidy for EAS at any 

community where the per-passenger rate exceeds $200, unless the community is greater than 210 miles from the 

nearest large or medium hub. In this case, all five communities are clearly less than 210 miles from a large or 

medium hub.
- 6 -

flight logs for aircraft sold or disposed of must be retained. The carrier may forfeit its 

compensation for any claim that is not supported under the terms of this order;

4. We find that Silver Airways, continues to be fit, willing and able to operate as a commuter

carrier and capable of providing reliable Essential Air Service at Bradford, DuBois, and 

Franklin/Oil City, Pennsylvania; Jamestown, New York; and Parkersburg, West 

Virginia/Marietta, Ohio;

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

6. We will serve copies of this Order on the Mayors of Bradford, DuBois, Franklin, and Oil 

City, Pennsylvania, Jamestown, New York, Parkersburg, West Virginia, and Marietta, Ohio, the 

managers of Bradford Regional Airport, DuBois Regional Airport, Venango Regional Airport 

(Franklin/Oil City), Chautauqua-Jamestown Regional Airport, and Mid-Ohio Valley Regional 

Airport (Parkersburg/Marietta), Silver Airways, and TransportAzumah.

By:

SUSAN L. KURLAND

Assistant Secretary

for Aviation and International Affairs

(SEAL)

An electronic version of this document is available 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 Airline Solutions®.
Appendix B

Silver Airways Proposal for Bradford, DuBois, Franklin/Oil City, Jamestown, and Parkersburg/Marietta
Appendix C

Page 1 of 4

Silver Airways

Essential Air Service to be Provided at Bradford, PA, and Jamestown, NY

Effective Period: October 1, 2012, through September 30, 2014

Scheduled Service: 18 weekly nonstop or one-stop round trips to Cleveland Hopkins 

International Airport over a Cleveland-Bradford-Jamestown-Cleveland or Cleveland-JamestownBradford-Cleveland routing

Aircraft: Beech 1900D, 19 seats

Rate per Eligible Flight: $1,0581

Weekly Ceiling per community: $38,0882

Note: 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 order beyond September 30, 2012. The Government’s 

obligation for performance under this order beyond September 30, 2012, is subject to 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 September 30, 2012, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond September 30, 2012, the 

Department will provide notice in writing to the carrier.

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

 1 Annual compensation of $3,880,544, divided by 3,669 annual departures (36 weekly departures x 52 weeks x 98 

percent completion x 2 communities). 2 36 flights per week multiplied by $1,058 per flight.
Appendix C

Page 2 of 4

Silver Airways

Essential Air Service to be Provided at DuBois, PA

Effective Period: October 1, 2012, through September 30, 2014

Scheduled Service: 24 weekly nonstop or one-stop round trips

Intermediate stops and upline service: Service may be routed via Franklin/Oil City, PA

Aircraft: Beech 1900D, 19 seats

Rate per Eligible Flight: $1,0581

Weekly Ceiling: $50,7842

Note: 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 order beyond September 30, 2012. The Government’s 

obligation for performance under this order beyond September 30, 2012, is subject to 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 September 30, 2012, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond September 30, 2012, the 

Department will provide notice in writing to the carrier.

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

 1 Annual compensation of $2,587,029, divided by 2,446 annual departures (48 weekly departures x 52 weeks x 98 

percent completion).

2 48 flights per week multiplied by $1,058 per flight.
Appendix C

Page 3 of 4

Silver Airways

Essential Air Service to be Provided at Franklin/Oil City, PA

Effective Period: October 1, 2012, through September 30, 2014

Scheduled Service: 12 weekly nonstop or one-stop round trips

Intermediate stops and upline service: Service may be routed via DuBois, PA

Aircraft: Beech 1900D, 19 seats

Rate per Eligible Flight: $1,0581

Weekly Ceiling: $25,3922

Note: 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 order beyond September 30, 2012. The Government’s 

obligation for performance under this order beyond September 30, 2012, is subject to 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 September 30, 2012, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond September 30, 2012, the 

Department will provide notice in writing to the carrier.

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

 1 Annual compensation of $1,293,515, divided by 1,223 annual departures (24 weekly departures x 52 weeks x 98 

percent completion).

2 24 flights per week multiplied by $1,058 per flight.
Appendix C

Page 4 of 4

Silver Airways

Essential Air Service to be Provided at Parkersburg, WV/Marietta, OH

Effective Period: October 1, 2012, through September 30, 2014

Scheduled Service: 24 weekly nonstop round trips to Cleveland Hopkins International Airport

Intermediate stops and upline service: No intermediate stops permitted

Aircraft: Beech 1900D, 19 seats

Rate per Eligible Flight: $1,0581

Weekly Ceiling: $50,7842

Note: 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 order beyond September 30, 2012. The Government’s 

obligation for performance under this order beyond September 30, 2012, is subject to 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 September 30, 2012, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond September 30, 2012, the 

Department will provide notice in writing to the carrier.

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

 1 Annual compensation of $2,587,029, divided by 2,446 annual departures (48 weekly departures x 52 weeks x 98 

percent completion).

2 48 flights per week multiplied by $1,058 per flight.