### Orde r 2010-12-2 9 Served : Decembe r

2a , 201 0 

# ^t^:^mlt% . UNITE

D STATES O F AMERICA i ^ M l DEPARTMEN T O F TRANSPORTATIO

N OFFIC E O F TH

E SECRETAR

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# ] f WASfflNGTON,D.C . Issue db y th e Departmen t o f Transportatio n o n th e 23r dda y o f

Decembe r

201 0


## Essentia l Ai rServic e at THIE F RIVE R FALLS , MINNESOT A unde r4 9 U.S.C
. 4173 1 etseq . DOCKE T DOT-OST-2001-1064 2



## ORDE R EXTENDIN G SUBSID Y RAT E Summary B y thi s order , th e Departmen t i s extendin g th e curren t

subsid y contrac t

o f Mesab a Aviatio n Inc. , operatin g a s Delt aConnectio n (Mesaba ) for th e provisio n o f

essentia l ai r servic e (EAS ) at

Thie f Rive r Falls , Miimesota , fro mJun e 1 , 2011 , throug h Octobe r 31 , 2011 . 

## Backgroun d B y Orde r 2009-4-20 , Apri l 27 , 2009 , th e Departmen t selecte dMesab at o continu e providin g EA S at

Thie f Rive r Fall s for th e two-year

perio dthroug h May 31 , 2011 . Tha t orde r establishe dan annua l subsid y rat e o f $1,230,322 , for

servic e consistin g o f

1 2 one sto p roun dtrip s pe r

wee k ove r aThie f Rive r Falls-Chisholm/Hibbing-Minneapoli s routing . B y Orde r

OST-2003-15796 , Augus t 11 , 2009 , th e Departmen t selecte dMesab a t o provid e EA S at

Chisholm/Hibbin g throug h Octobe r 31 , 2011 . Becaus e th e communitie s ar e serve dove r th e sam e linear

routing , th e contract s shoul db e o n th e sam e tim e cycle . Sinc e Chisholm/Hibbing' s EA S contrac t end s Octobe r

31 , 2011 , w e ar e her e extendin g Thie f

Rive r Falls ' contrac t

t o en do n Octobe r

3 1 a s well . W e hav e discusse d thi s extensio n with bot h Mesab aan dth e commimity , an dthay bot h full y support thi s action . W e wil l issu e aReques t Fo r Proposal s i n th e lat e sprin g for bot h Chisholm/Hibbin g an dThie f Rive r Fall s i n th e sam e order . Thi s orde r

i s issue dunde r

authorit y assigne di n 1 4 CF R385.12(k)(5) .

## ACCORDINGLY ,

1 . The Departmen

t extend s th e curren

t subsid y rat e o f Mesab aAviatio n Inc. , fo

r th e provisio n o

f essentia l ai r servic e a t Thie f Rive r Falls , Miimesota , as se

t fort h i n Orde r 2009-4-20 , unti l Octobe

r 31 , 2011 . The fina

l rat e ma y b e higher , lowe

r or th e sam e as th e curren t rat e w e ar e extending here ; an

d 2 . W e will serv e acop

y o f thi s orde r o n Mesab aAviatio n Inc. , th e mayo r an dairpor t manage r o f Thie f Rive r Falls ; By :

SUSA N L
. KURLAN D Assistan t Secretar

y fo rAviatio n an d Internationa l Affairs (SEAL ) A n electri c version o

f thi s documen

t i s availabl e o

n th e Worl dWid e We b a t http://dms . dot . gov

/

### Appendi x A Mesab aAviatio n Inc . Essentia l Ai r

Servic e t o b e provide da t Thie f Rive r Falls , Minnesot a Effective Period : Jun e 1 , 2011 , through Octobe r 31 , 201 1 ScheduledService : 1 2 one-stop roundtrip s pe r wee k to Minneapoli s Aircraft : Saa

b 340 , 3 4 seat s Rat e pe r Eligibl e Flight' : $1,01 6 Weekl y Ceiling pe

r Comnnunitv^ : $24,38 3 Note : Th e carrie r

understand s that

i t ma y forfei t it s compensatio n for

an y flight s tha t

i t doe s no t operat e i n conformanc e wit

h th e term s an dstipulation s o f th e rat e order , includin g th e servic e plan s outline din th e orde r an dany othe r

significan t

element s o f

th e require dservice , withou t prio r approval . Th e carrie r understand s that

an aircraf t take-of f an dlandin g at

it s schedule ddestinatio n constitute s acomplete dflight ; absen t an explanatio n supportin g subsid y eligibility for aflight tha t ha s no t bee n completed , suc h a s certai n weathe r cancellations , onl y complete dflight s ar e considere deligibl e for subsidy . I n addition , if

th e carrie r doe s no t schedul e o r

operat e it s flight s i n full conformanc e wit h th e orde r

fo r asignifican t

period , i t ma y jeopardiz e it s entir e subsid y clai mfor th e perio di n question . If th e carrie r

contemplate s any suc h change s beyon dth e scop e o f

th e orde r durin g th e applicabl e perio do f thes e rates , i t

mus t first notif y th e Offic e o f Aviatio n Analysi s i n writin g an dreceiv e writte n approva l fromth e Departmen t t o b e ensure do f

full compensation . Shoul dcircumstance s warrant , th e Departmen t ma y locat e an dselec t

areplacemen t

carrie r t o provid e servic e o n thes e routes . Th e carrie r mus t complet e al l flights tha t

ca n b e safel y operated ; flights that overfl y point s fo

r lac k o f traffi c wil l no t

b e compensated . I n determinin g whethe r subsidy paymen t

for adeviatin g flight

shoul db e adjuste do r

disallowed , th e Departmen t wil l conside r

th e exten t

t o whic h th e goal s o f th e progra mar e me t

an dth e exten t

o f acces s t o th e nationa l ai r transportatio n syste mprovide dt o th e community . If th e Departmen t

unilaterally , eithe r

partiall y o r

completely , terminate s o r reduce s payment s fo

r servic e o r change s servic e requirement s at aspecifi c locatio n provide dfor unde r thi s order , then , at

th e en do f

th e perio dfor whic h th e Departmen t

doe s mak e payment s i n th e stipulate damount s o r at th e stipulate dservic e levels , th e carrie r

ma y ceas e t o provid e servic e t o tha t specifi c locatio n withou t regar dt o any requiremen t for notic e o f suc h cessation . Thos e adjustment s i n th e level s o f subsid y and/o r

servic e tha t

ar e mutuall y agree d t o in writin g b y th e Departmen t an dcartie r

d o no t constitut e atota l o r

partia l reductio n o r

cessatio n o f payment . Subsidy contract s ar e subjec t to , an dincorporat e b y reference , relevan t statute s an dDepartmen t

regulations , a s the y ma

y b e amende dfromtim e t o time . However , any suc h statutes , regulations , o r amendment s theret o shal l no t operat e t o controver t

th e foregoin g paragraph . Fund s ar e no t

curtentl y availabl e for

performanc e unde r

thi s orde r

beyon dDecembe r

3 , 2010 . Th e Government' s obligatio n for performanc e unde r

thi s orde r

beyon dDecembe r

3,2010 , i s subjec t

t o th e availability o f

appropriate dfund s fromwhic h paymen t for service s ca n b e made . N o legal liability o n th e par t o f th e Governmen t

fo r any paymen t

ma y aris e fo r performanc e unde r

thi s orde r

beyon dDecembe r

3 , 2010 , unti l fund s ar e mad e availabl e t o th e Departmen t for performance . I f

fund s ar e no t

mad e availabl e for performanc e beyon dDecembe r 3 , 2010 , th e Departmen t

wil l provid e notic e i n writin g t o th e cartier . Al l claim s for

paymen t mus t b e submitte dwithi n 6 0 day s o f th e las t day o f servic e provide dunde r

thi s order .

* Annua l compensatio n o f $1,230,322 , divide db y 1,21 1 annua l departure s (2 4 weekl y flights x 5 2 week s x 9 7 percen t

completion) . 2 2 4 artival s an ddeparture s pe r week multiplie db y $1,01 6 pe r flight.