Order 2010-12-29 

Served: December 2a, 2010 

^t^:^mlt%. UNITED STATES OF AMERICA 

i ^ M l DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY z 

^.^y^^^.c ^ ]f WASfflNGTON,D.C. 

Issued by the Department of Transportation 

on the 23rd day of December 2010 

Essential Air Service at 

THIEF RIVER FALLS, MINNESOTA 

under 49 U.S.C. 41731 etseq. 

DOCKET DOT-OST-2001-10642 

ORDER EXTENDING SUBSIDY RATE 

Summary 

By this order, the Department is extending the current subsidy contract of Mesaba 

Aviation Inc., operating as Delta Connection (Mesaba) for the provision of essential air 

service (EAS) at Thief River Falls, Miimesota, from June 1, 2011, through October 31, 

2011. 

Background 

By Order 2009-4-20, April 27, 2009, the Department selected Mesaba to continue 

providing EAS at Thief River Falls for the two-year period through May 31, 2011. That 

order established an annual subsidy rate of $1,230,322, for service consisting of 12 onestop round trips per week over a Thief River Falls-Chisholm/Hibbing-Minneapolis 

routing. By Order OST-2003-15796, August 11, 2009, the Department selected Mesaba 

to provide EAS at Chisholm/Hibbing through October 31, 2011. Because the 

communities are served over the same linear routing, the contracts should be on the same 

time cycle. Since Chisholm/Hibbing's EAS contract ends October 31, 2011, we are here 

extending Thief River Falls' contract to end on October 31 as well. We have discussed 

this extension with both Mesaba and the commimity, and thay both fully support this 

action. We will issue a Request For Proposals in the late spring for both 

Chisholm/Hibbing and Thief River Falls in the same order. 

This order is issued under authority assigned in 14 CFR 385.12(k)(5). 
ACCORDINGLY, 

1. The Department extends the current subsidy rate of Mesaba Aviation Inc., for 

the provision of essential air service at Thief River Falls, Miimesota, as set forth in 

Order 2009-4-20, until October 31, 2011. The final rate may be higher, lower or the same as 

the current rate we are extending here; and 

2. We will serve a copy of this order on Mesaba Aviation Inc., the mayor and airport 

manager of Thief River Falls; 

By: 

SUSAN L. KURLAND 

Assistant Secretary for Aviation 

and International Affairs 

(SEAL) 

An electric version of this document is available on the World Wide Web at 

http://dms. dot. gov/ 
Appendix A 

Mesaba Aviation Inc. 

Essential Air Service to be provided at Thief River Falls, Minnesota 

Effective Period: June 1, 2011, through October 31, 2011 

Scheduled Service: 12 one-stop round trips per week to Minneapolis 

Aircraft: Saab 340, 34 seats 

Rate per Eligible Flight': $1,016 

Weekly Ceiling per Comnnunitv^: $24,383 

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 cartier 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 curtently available for performance under this order beyond December 3, 2010. The 

Government's obligation for performance under this order beyond December 3,2010, 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 December 3, 

2010, until funds are made available to the Department for performance. If funds are not made available for 

performance beyond December 3, 2010, the Department will provide notice in writing to the cartier. 

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

order. 

* Annual compensation of $1,230,322, divided by 1,211 annual departures (24 weekly flights x 52 weeks x 

97 percent completion). 

2 24 artivals and departures per week multiplied by $1,016 per flight.