### O rder: 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 29 th 

### of April , 20 1 4

ORDER REQUESTING PROPOSALS

Summary

By this O rder, the Department is requesting proposals from air ca rriers interested in providing

E ssent ial A ir S ervice (EAS) at Kearney, North Platte, and /or Scottsbluff, Nebraska

, for a new

contract period beginning November 1, 201 4 , with or without subsidy

. (See Appendix A for a

map). Air c arriers 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 tha t Order, Great Lakes pro vides each community with t hree nonstop

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

with 19

- passenger Beechcraft 1900 aircraft.

The complet e publ ic 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, NEBRA SKA

Under 49 U.S.C. § 41731 et seq

. Docket DOT

- OST

- 1996

- 1715

Docket DOT

- OST

- 199 9

- 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

, 201 4

. Carriers should

file their proposals no later than May 28

, 20 14

. Staff will the n docket the proposals, thereby

making them public

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

communit y 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 d iscretion 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 prescr ibe 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.r egulations.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 det ail 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 communit ies 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 th e Department to accept late fil ings. In cases where a carrier proposes to provide

EAS without subsidy and we determine that ba sic 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 carr ier 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 arrangement s 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 add ition, 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 incepti on 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 cont ains those general provisions.

### - 3

-

have provided a summary of historical passengers in Appendi x B. 3 

### F or the year ended

December 31

, 2013 , Kearney, North Platte, and Scottsbluf f 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 co nsistent with

what the communities currently rec eive

, 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 (1 2 per week). For proposals with aircraft seating around 19 passengers, the

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

proposals with 8/9

- seat aircraft, we would expect proposals for four or five round trips pe r day

(24

- 30 per week). Air c arriers are also welcome to propose more than one service option, if

they choose. T hey also need not limit themselves to the se requirements if they envision other,

potentially more attractive service possibilities

-- differen t 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 app licants 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 fo r 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 mus t 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 su bsidy 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 Offic e 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

- Assist ed 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 Assist ance; (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 certifica tions are also available on the web at http://www.dot.gov/policy/aviation

- policy/small

- community

rural

- 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

, 20 14 . The proposals should be e

- mailed to: michael.f.martin@dot.gov

with the title “Proposal to Pro vide E AS at Kearney, North Platte, and/or Scottsbluff ”; 6



### 2. Th ese docket s will remai n open until further O rder of the Department; and

3 . We will serve copies of this O rder on the mayor s of Kearney, North Platte

, and Scottsbluff;

Nebraska, the airport m anager s 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 Depa rtment’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.

B y:

TODD M. HOMAN

Director

Office of Aviation Analysis

(SEAL)

An electronic version of this document is available

o nline at www.regulations.gov

.

6 Questions regarding filings in response to this O rder 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

2 012 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 6,13 5 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

201 2 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

Tota ls 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 ca rrier 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 re quired 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

complete d, 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 e ntire 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

app roval 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 provi ded 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 req uirement 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 provid e 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 sha ll not operate to controvert the foregoing paragraph.

All claims for payment, including any amended cl aims, must be submitted within 9 0 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 31 st 

### ; August claims must be submitted by November 30 th 

### , and so on.