Order: 2014-4-30

Served: April 29, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 29th of April, 2014

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is requesting proposals from air carriers interested in providing 

Essential Air Service (EAS) at Kearney, North Platte, and/or Scottsbluff, Nebraska, for a new 

contract period beginning November 1, 2014, with or without subsidy. (See Appendix A for a 

map). Air carriers should file their proposals no later than May 28, 2014.

Background

By Order 2012-8-23 (August 20, 2012), the Department selected Great Lakes Aviation, Ltd., 

operating as both a United Airlines and Frontier Airlines code-share partner (Great Lakes), to 

provide EAS at the above-mentioned communities for the two-year term from 

November 1, 2012, through October 31, 2014, for a combined annual subsidy rate of 

$4,848,765 ($1,752,904 for Kearney, $1,697,510 for North Platte, and $1,398,351 for 

Scottsbluff). Under that Order, Great Lakes provides each community with three nonstop 

weekday and weekend round trips (18 per week) to Denver International Airport (Denver), 

with 19-passenger Beechcraft 1900 aircraft.

The complete public file for EAS at the three communities may be accessed online through 

the Federal Dockets Management System at www.regulations.gov by entering each 

community’s respective docket number in the “Search for Rules, Comments, Adjudications, 

or Supporting Documents” field.

Essential Air Service at

KEARNEY, NEBRASKA

NORTH PLATTE, NEBRASKA

SCOTTSBLUFF, NEBRASKA

Under 49 U.S.C. § 41731 et seq.

Docket DOT-OST-1996-1715

Docket DOT-OST-1999-5173

Docket DOT-OST-2003-14535
- 2 -

Request for Proposals

As the end of the current contract approaches, the Department is requesting proposals from air 

carriers interested in providing EAS at Kearney, North Platte, and/or Scottsbluff with subsidy

support if necessary, for a new contract period beginning November 1, 2014. Carriers should 

file their proposals no later than May 28, 2014. Staff will then docket the proposals, thereby 

making them public. Shortly afterwards, we will provide a summary of the proposals to the 

community and ask them to submit their final comments. We will give full consideration to 

all proposals that are timely filed.1

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

proposals will represent their final and only proposals. However, we retain the discretion to 

negotiate proposals with carriers when we deem it desirable; in such cases, of course, we will 

give all applicants the same opportunity. We also retain the discretion to reject outright all 

unreasonable or unrealistic proposals and re-solicit a new round of proposals. However, 

negotiation and rejection are only occasional exceptions to the rule.

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 for their 

proposals. Air 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 

www.regulations.gov, each page should be formatted to be viewed online. 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, we recommend they include information concerning proposed 

schedules and projected block hours. In addition, applicants are urged to provide financial 

data supporting their subsidy requests, including information on their projected expenses and 

revenues. We strongly encourage clear, well-documented proposals that will facilitate their 

evaluation by the affected communities and the Department.2

Proposals should provide sufficient capacity to accommodate historical levels of traffic. In 

order to assist air carriers in developing traffic and revenue projections for their proposals, we 

 1 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 basic EAS, as required by 49 U.S.C. § 41732, can be reliably 

provided without such compensation, we typically will not proceed with the carrier-selection case. Instead, we 

simply rely on that carrier’s subsidy-free service as proposed.

2 In selecting 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 arrangements 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 

Appropriations Act, 2014, Public Law No. 113-76, 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 

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 -

have provided a summary of historical passengers in Appendix B.3 For the year ended 

December 31, 2013, Kearney, North Platte, and Scottsbluff averaged 42, 27, and 30 passenger 

enplanements per day, respectively: We note also that passenger levels have generally been 

increasing the last several years. The Department expects proposals that are consistent with 

what the communities currently receive, with service to a large- or medium-hub airport, such 

as Denver, that provides numerous connecting opportunities to the national air transportation 

system. Specifically, for 30-passenger or larger aircraft, we expect proposals for two round 

trips per day (12 per week). For proposals with aircraft seating around 19 passengers, the 

Department expects three round trips each weekday and weekend (18 per week). For 

proposals with 8/9-seat aircraft, we would expect proposals for four or five round trips per day 

(24-30 per week). Air carriers 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 competitive.

Community Comments

The communities and State are welcome to submit comments at any time. We encourage 

prospective applicants to contact the communities before they submit their proposals so that 

they can tailor them to the communities’ needs, as they will not be able to amend them after 

the due date. As noted earlier, we 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.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.4 Consequently, all carriers receiving 

Federal subsidy for EAS 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 contract must also certify that they are in compliance with 

the regulations governing lobbying activities. Because 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 certifications. Interested carriers requiring more detailed information 

regarding these requirements should contact the Office of Aviation Analysis at 

(202) 366-5903.5

 3 Source: Bureau of Transportation Statistics; Schedule T-100.

4 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 Programs 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 Government-Wide Requirements for 

Drug-Free Workplace (Grants).

5 The certifications are also available on the web at http://www.dot.gov/policy/aviation-policy/small-communityrural-air-service/essential-air-service. 
- 4 -

This Order is issued under authority delegated in 49 CFR Part 1.25a(b) and re-delegated to the 

Director, Office of Aviation Analysis.

ACCORDINGLY,

1. We request that carriers interested in providing Essential Air Service at Kearney, North 

Platte, and/or Scottsbluff, Nebraska, submit their proposals, with subsidy support if necessary, 

no later than May 28, 2014. The proposals should be e-mailed to: michael.f.martin@dot.gov

with the title “Proposal to Provide EAS at Kearney, North Platte, and/or Scottsbluff”;6

2. These dockets will remain open until further Order of the Department; and

3. We will serve copies of this Order on the mayors of Kearney, North Platte, and Scottsbluff;

Nebraska, the airport managers of Kearney Regional Airport and North Platte Regional

Airport, and the airport director of Western Nebraska Regional Airport; and the service list for 

this docket.

Persons entitled to petition the Department for review of this Order under the Department’s 

Regulations, 14 CFR Part 385.31(a), must file such petitions within seven (7) 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

online at www.regulations.gov. 

 6 Questions regarding filings in response to this Order may be directed to Michael Martin at (202) 366-6494 or

michael.f.martin@dot.gov. 
Appendix A

AREA MAP

Maps generated by the Great Circle Mapper - copyright © Karl L. Swartz.
Appendix B

Page 1 of 3

Kearney, Nebraska

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per Day

2010 1 2162 2210 4,372 28

2010 2 2327 2384 4,711 30

2010 3 2524 2438 4,962 31

2010 4 2361 2403 4,764 30

Annual 

Totals 9,374 9,435 18,809 30

2011 1 2423 2439 4,862 32

2011 2 2709 2699 5,408 35

2011 3 2931 2956 5,887 37

2011 4 2925 2838 5,763 36

Annual 

Totals 10,988 10,932 21,920 35

2012 1 2867 2916 5,783 38

2012 2 3185 3118 6,303 40

2012 3 3068 3261 6,329 40

2012 4 3288 3204 6,492 41

Annual 

Totals 12,408 12,499 24,907 40

2013 1 3275 3154 6,429 42

2013 2 3356 3414 6,770 43

2013 3 3377 3321 6,698 42

2013 4 2984 3151 6,135 39

Annual 

Totals 12,992 13,040 26,032 42
Appendix B

Page 2 of 3

North Platte, Nebraska

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per day

2010 1 1691 1682 3,373 22

2010 2 2098 2025 4,123 26

2010 3 2165 2254 4,419 28

2010 4 1919 1950 3,869 24

Annual 

Totals 7,873 7,911 15,784 25

2011 1 1799 1912 3,711 24

2011 2 2262 2255 4,517 29

2011 3 2313 2395 4,708 30

2011 4 1964 2055 4,019 25

Annual 

Totals 8,338 8,617 16,955 27

2012 1 1872 1894 3,766 24

2012 2 2118 2104 4,222 27

2012 3 2273 2296 4,569 29

2012 4 1966 2016 3,982 25

Annual 

Totals 8,229 8,310 16,539 26

2013 1 1840 1866 3,706 24

2013 2 2231 2232 4,463 29

2013 3 2243 2296 4,539 29

2013 4 1959 2073 4,032 26

Annual 

Totals 8,273 8,467 16,740 27
Appendix B

Page 3 of 3

Scottsbluff, Nebraska

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per day

2010 1 2094 2107 4,201 27

2010 2 2233 2245 4,478 29

2010 3 2213 2238 4,451 28

2010 4 2332 2136 4,468 28

Annual 

Totals 8,872 8,726 17,598 28

2011 1 1963 2036 3,999 26

2011 2 2236 2313 4,549 29

2011 3 2675 2773 5,448 34

2011 4 2243 2224 4,467 28

Annual 

Totals 9,117 9,346 18,463 29

2012 1 1931 1987 3,918 25

2012 2 2271 2241 4,512 29

2012 3 2352 2448 4,800 30

2012 4 2368 2378 4,746 30

Annual 

Totals 8,922 9,054 17,976 29

2013 1 2217 2348 4,565 30

2013 2 2484 2478 4,962 32

2013 3 2349 2410 4,759 30

2013 4 2149 2268 4,417 28

Annual 

Totals 9,199 9,504 18,703 30
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 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 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.

Funds may not be available for performance under this Order beyond [DATE]. The Government’s 

obligation for performance 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 funds 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 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.

All claims for payment, including any amended 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 31st; August claims must be submitted by November 30th, and so on.