### Order: 2013

- 6

- 1
Served: June 3, 2013



## UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation
on the 3 rd 

### day of June , 20 1 3

Essential Air Service at

KINGMAN, ARIZONA PAGE, ARIZONA PRESCOTT, ARIZONA SHOW LOW, ARIZONA DOCKET DOT

- OST

- 1996

- 1899
DOCKET DOT

- OST

- 1997

- 2694
DOCKET DOT

- OST

- 1996

- 1899
DOCKET DOT

- OST

- 1998

- 4409

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



## ORDER RE

- SELECTING AIR CARRIER

Summary By th is O rder, the Department is re

- selecting Great Lakes Aviation, Ltd. (Great Lakes) to provide Essential Air Service (EAS) at Kingman, P age, Prescott, and Show Low, Arizona,

f

or the two

- year period from May 1, 2013, through April 30, 2015 , for a combined annual subsidy of $7,873,533

.

Background By Order 2011

- 3

- 4, March 1, 2011 the Department re

- selected Great Lakes to provide EAS
at the above

- mentioned com munities for the two

- year term ending April 30, 2013, using
19

- passenger Beechcraft 1900D aircraft for a combined annual subsidy of $6,278,887.

As the end of the current contract was approaching, we issued Order 2013

- 1

- 8, January 11, 2013, requesting prop osals from air carriers interested in providing EAS at the four communities for a new term. In response to that Order, we received proposals from

### - 2

-

three air carriers: Great Lakes, SeaPort Airlines, Inc. (SeaPort), and Sovereign Air Inc. (Sovereign).

Each airline’s complete proposal and the communities’ comments may be accessed online

at www.regulations.gov by entering the communities’ ’ respective Docket number: Kingman, DOT

- OST

- 1996

- 1899, Page, DOT

- OST

- 1997

- 2694, Prescott, DOT

- OST

- 1996

- 1899, and Show Low, DOT

- OST

- 1998

- 4409.

Air Carrier Proposals Sovereign does not have the requisite operating authority to provide scheduled air service
from the Federal Aviat ion Administration (FAA) or the Department of Transp ortation’s
Air Carrier Fitness D ivision , nor do they have applications on fil e requesting said
authorities. Therefore, we will summarize only the proposals put forth by Great Lakes and

SeaPort.



## Kingman

Airline Subsidy Routing Weekly
Frequency Aircraft Seats Package

or Stand

Alone?

Great Lakes $1,635,180 IGM

- LAX and/or PHX

nonstop 12 Beechcraft 1900D 19 Stand

Alone

SeaPort, Option 1 $1,497,791 IGM

- PRC

PHX 18 Single

- engine

Cessna Caravan 8 or

9 Packaged

with PRC

SeaPort, Option 2 $1,260,308 IGM

- PRC

PHX 18 Single

- engine

Cessna Caravan 8 or

9 Packaged

with PGA

, PRC, SOW

SeaPort, Option 3 $1,653,340 IGM

- PRC

PHX 18 Twin engine Piper

Chieftain or

Cessna 402 8 or

9 Packaged

with PRC

SeaPort, Option 4 $1,477,935 IGM

- PRC

PHX 18 Twin engine Piper

Chieftain or

Cessna 402 8 or

9 Packaged

with PGA

, PRC, SOW

### - 3

-



## Page

Airline Subsidy Routing Weekly
Frequency Aircraft Seats Package or

Stand

- Alone?

Great Lakes $2,472,028 PGA

- PHX
nonstop and/or DEN

one

- stop or

LAX one

- stop Peak: 24; Mid

Peak: 18; Off

peak: 12 Beechcraft

1900D 19 Packaged

with PRC and

SOW

SeaPort, Option 1 $2,961,262 PGA

- PHX
nonstop Peak: 32; Off

peak: 18 Single engine

Cessna Caravan 8 or

9 Stand

- Alone

SeaPort, Option 2 $2,727,672 PGA

- PHX
nonstop Peak: 32; Off

peak: 18 Single engine

Cessna Caravan 8 or

9 Packaged

with IGM

, PRC, SOW

SeaPort, Option 3 $2,510,862 PGA

- PHX
nonstop Peak: 32; Off

peak: 18 Twin engine Piper Chieftain

or Cessna 402 8 or

9 Stand

- Alone

SeaPort, Option 4 $2,341,137 PGA

- PHX
nonstop Peak: 32; Off

peak: 18 Twin engine Piper Chieftain

or Cessna 402 8 or

9 Packaged

with IGM

, PRC, SOW



## Prescott

Airline Subsidy Routing Weekly
Frequency Aircraft Seats Package

or Stand

Alone?

Great Lakes $2,094,235 PRC

- LAX
nonstop and/or DEN

one

- stop 18 Beechcraft

1900D 19 Stand

Alone

SeaPort, Option 1 $1,603,276 PRC

- PHX 26 Single engine

Cessna

Caravan 8 or

9 Stand

Alone

SeaPort, Option 2 $1,433,955 PRC

- PHX 26 Twin

- engine Piper C hieftain

or Cessna

402C 8 or

9 Packaged

with IGM

, PGA , SOW

### - 4

-



## Show Low

Airline Subsidy Routing Weekly
Frequency Aircraft Seats Package

or Stand

Alone?

Great Lakes $1,672,000 SOW

- PHX
nonstop and/or

DEN one

stop Peak: 18;

Off

- peak:

12 Beechcraft 1900D 19 Stand

Alone

SeaPort, Option 1 $2,107,694 PRC

- PHX 26 Single engine

Cessna Caravan 8 or

9 Stand

Alone

SeaPort, Option 2 $1,893,991 SOW

- PHX 26 Single engine

Cessna Caravan 8 or

9 Packaged

with IGM

, PGA , PRC

SeaPort, Option 3 $2,023,407 SOW

- PHX 26 Twin engine Piper

Chieftain or

Cessna 402 8 or

9 Stand

Alone

SeaPort, Option 4 $1,863,405 SOW

- PHX 26 Twin engine Piper

Chieftain or

Cessna 402 8 or

9 Packaged

with IGM

, PGA , PRC



### Community Comments All comments from the four communities supported Great Lakes’ proposal. The Honorable John Salem, Mayor of Kingman, stated that “[ Great Lakes’ ] planes are clean and well kept...the Beech 1900 has served us well...the airline crews are very professional
and knowledgeable.” Mayor Bill Diak of Page c omments that Great Lakes’ “...has not only offered good airline service to our community but have also been good com munity members.” Mayor Marlin D . Kuykendall of Prescott expressed a desire that Great Lakes
work cl osely with the City to develop a better flight schedule to ensure the maximum number of passengers will utilize the airline’s service and airport. The Honorable Daryl Seymore, Mayor of Show Low, noted that Great Lakes has provided EAS at the community sin ce 2005, adding that the airline and the community have a good working relationship. Mayor Seymore also mentioned the airline’s existing i nter

- airline agreements as a reason for supporting Great Lakes’ proposal for a new term.

Decision After carefully re viewing each carrier’ s proposal and taking into account community feedback, we have decided to re

- select Great Lakes to provide EAS at all four
communities. We base our decision to cho ose Great Lakes on the four carrier

- selection
criteria contained in 49 U.S.C. § 41733 (c) : 1) the demonstrated reliability in providing scheduled air service; 2) the contractual and marketing arrangements with a larger carrier to ensure service beyond a hub airport; 3) interline agreements with a larger carrier; and 4) support by the community ’s elected officials for the applicant’s proposal. Great Lakes’ proposal meets all four statutory criteria. Great Lakes is an established scheduled air

### - 5

-

carrier that has provided reliable air service to the four communities in the air carrier
selection ca se. Great Lakes has interline agreements with all major airlines and code

- share agreements with United Airlines and Frontier Airlines at the Denver hub. T herefore, it provide s its passengers connections beyond hub airports to the national air transportat ion system. In addition, these interline agreements enable its passengers to reach their
des ti nation with one reservation, ticket, and baggage check

- in. Lastly, the elected officials
of all four communities unanimously support Great Lakes’ proposals.

We shall make this selection of Great Lakes at Kingman, Page, Prescott, and Show Low, contingent upon the Department’s receiving properly executed certifications from the air carrier that it is in compliance with the Department’s regulations regarding drug

- f ree workplaces and nondiscrimination, as well as the regulations concerning lobbying
activities. 1



### Legislative Changes That May Affect Future EAS Eligibility at Kingman 

### Although we are selecting Great Lakes to serve Kingman for a two

- year period , there hav e been legislative changes that may affect futur e EAS subsidy at Kingman. The 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 th e Secretary, during the most recent fiscal year beginning after September 30, 2012. 2 

### 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. As Kingman is a bout 121 miles from Las Vegas, the community must meet the 10 enplanement

- a

- day threshold for EAS to continue after FY2013 or otherwise face termination of its eligibility to receive EAS, barring a waiver from the Secretary.

In the most recent fiscal ye ar for which data are available, FY2012 (October 2011

- September 2012), Kingman generated a total of 2,063 passengers (inbound and outbound), or an average of 3 enplanements per day. 3 

### The community and carrier will need to attract enough passengers to meet the 10 enplanements per day statutory requirement in order for Kingman to remain eligible to continue receiving EAS after FY2013. The Department will continue to monitor Kingman’s eligibility to receive EAS in light of these new requirements throughout t he life of any executed contract. The Department may cancel a

1 The certifications are available online under “Reports and Publications” at http://www.dot.gov/policy/aviation

- policy/small

- community

- rural

- air

- service/essential

- air

- service

2 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). A detailed explanation of the temporary decline would have to be submitted to the Department with relevant supporting documents.
3 Source: Bureau of Transportation Statistics; Form 41, Schedule T

- 100. Daily averages are based on one

half of the O&D passengers, divided by 313 service days (314 during leap years).

### - 6

-

contract for any community receiving EAS if enplanements remain below 10 per day during FY2013. 4



### We shall make this selection of Great Lakes at Kingman, Page, Prescott, and Show Low contingent upon the Department’s receiving properly executed certifications from the air carrier that it is in compliance with the Department’s regulations regarding drug

- free workplaces and nondiscrimination, as well as the regulations concerning lobbying
activitie s. 5



### Carrier Fitness
49 U.S.C. §§ 41737(b) and 41738 require that we find an air carrier fit, willing, and able to provide reliable service before we may subsidize it to provide EAS

. Great Lakes is subject to the Department’s continuing fitness requirements, and no information has come to our attention that would cause us to questions the air 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 findings. We therefore conclude that Great Lakes is reliable and fit to conduct the operations proposed here.

This Order is issued under authority delegated in 49 CFR Part 1. 25 a( b ).

ACCORDINGLY,

1. We re

- select Great Lakes Aviation, Ltd. to provide Essential Air S ervice at Kingman

, Page, Prescott, and Show Low, Arizona , and establish annual subsidy rate s as described in Appendix C;

2

. We direct Great Lakes Aviation, Ltd. 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 d ocumentation 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 flight logs for aircraft sold or disposed of
must be retained. The ca rrier may forfeit its compensation for any claim that is not supported under the terms of this Order ;

3 . We f i nd that Great Lakes Aviation, Ltd. is fit, willing and able to operate as a commuter
air carrie r , and capable of providing reliable Essential Air S ervice at Kingman, Page, Prescott, and Show Low, Arizona ;

4

. These docket s will remain open pending further Department action ; and

4 In addition, Kingman and Show Low remain subject to the $200 per passenger subsidy cap. See pages 2

- 3 of the “Order Requesting Proposals.”

5 The certifications are also availabl e on the web at http://ostpxweb.dot.gov/aviation/index.html.

### - 7

-

5 . We will serve copies of this Order on the Mayor s, and Airport Manager s of Kingman, Page, Prescott, Show Low, Ariz ona , Great Lakes Aviation, Ltd

. , SeaPort Airlines, Inc., and Sovereign Air Inc.

B y:

SUSAN L. KURLAND Assistant Secretary for
Aviation and International Affairs

(SEAL)

An electronic version of this document is ava ilable at www.regulations.gov

### Appendix A



# AREA MAP

Maps generated by the Great Circle Mapper

- copyright © Karl L. Swartz

.

### Appendix B Page 1 of 4

### Appendix B Page 2 of 4

### Appendix B Page 3 of 4

### Appendix B Page 4 of 4

### Appendix C Page 1 of 4

Great Lakes Aviation , Ltd.
Essential Air Service to be Provided at Kingman, Arizona

Effective Period : May 1, 2013 through April 30, 2015
Scheduled Service : 12 weekly nonstop round trips to Los Angeles or Phoenix
Aircraft : 19

- passenger Beechcraft 1900D Rate per Eligible Flight: $ 1,337 1


### Weekly Ceiling : $ 32,088 2

Note: The carrier understands that it may forfeit it s 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 significan t 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 per iod, it may jeopardize its entire subsidy claim for the period in qu estion. If the carrier contemplates any such changes beyond the scope of the Order during the applicable period of this rate, 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 tr affic 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 t ransportation 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 e nd of the period for which the department does make payments in the stipulated service levels, the carrier may cease to provide service to that specific location without regards to any requirement for notice of such cessation. Those adjustments in the lev els 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 contract 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 may not be available for performance under this order beyond September 30, 2013

. The Government’s obligation for performance under this order beyond September 30, 2013 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 payme nt may arise for performance under this order beyond September 30, 2013 , until funds are made available to the Department for performance. If funds are not made available for performance beyond September 30, 2013 , the Department will provide notice in wri ting 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 $1,635,180 divided by 1,223 annual departures (24 weekly departures x 52 weeks x 98 percent completion)

. 2 24 arrivals and departures per week multiplied by $1,337 per flight

.

### Appendix C Page 2 of 4

Great Lakes Aviation, Ltd.
Essential Air Service to be Provided at Page, Arizona

Effective Period : May 1, 2013 through April 30, 2015
Hubs : Phoenix nonstop and/or Denver one

- stop or Los Angeles one

- stop
Aircraft : 19

- passenger Beechcraft 1900D Rate per Eligible Flight: $1,2 7 7 1

Scheduled Service : Service Dates Departures per Week Weekly Ceiling 2
May 1

– May 14, 2013 36 $45,972 May 15

– October 2 , 2013 44 $56,188

October 3

– December 6 , 2013 34 $43,418

December 7

– February 28, 2014 24 $30,648

March 1

– May 14 , 2014 36 $4 5,972 May 15

– October 2 , 2014 44 $5 6,188

October 3

– December 6 , 2014 3 6 $4 5,972

December 7

– February 28, 2015 24 $30, 648

March 1

– April 30 , 2015 36 $ 45,972

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 t he required service, without prior approval. The carrier understands that an aircr aft 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 cert ain weather cancellations, only completed flights are considere d 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 que stion. If the carrier contemplates a ny such changes beyond the scope of the Order during the applicable period of this rate, 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
circumstan ces 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. I n det ermining whether subsidy payment for a deviating flight should be adjusted or disallowed, the Department will consider the extent to w hich the goals of the program are met and the extent of access to the national air transportation system provided to the c ommunity.

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 departm ent does make payments in the stipulated service levels, the carrier may cease to provide service to that specific location without re gards 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 contract are subject to, and incorporate by reference, relevant statutes and Department regulations, as they may b e amended from time to time. However, any such statutes, regulations, or amendments thereto shall not operate to controvert the foregoing p aragraph.

Funds may not be available for performance under this order beyond September 30, 2013

. The Government’s obligation for performance under this order beyond September 30, 2013 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 thi s order beyond September 30, 2013 , until funds are made available to the Department for performance. If funds are not made available for performance beyond September 30, 2013 , 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 $2,472,028 divided by 1,936 annual departures (weekly departures x 52 weeks x 98 percent completion)

. 2 Total arrivals and departures per week multiplied by $1,277 per flight

.

### Appendix C Page 3 of 4

Great Lakes Aviation, Ltd.
Essential Air Service to be Provided at Prescott, Arizona

Effective Period : May 1, 2013 through April 30, 2015
Scheduled Service : 18 weekly nonstop round trips to Los Ang eles and/or Denver one

- stop
Aircraft : 19

- passenger Beechcraft 1900D Rate per Eligible Flight: $ 1,142 1


### Weekly Ceiling : $ 41,112 2

Note: The carrier understands t hat 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 significan t elements of the required service, wit hout 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 per iod, 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 this rate, it must first notify the Office of Aviation Analysis in writing and receive written approval from the Depart ment 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 service levels, the carrier may cease to provide service to that specific location without regards to any requirement for notice of such cessation. Those a djustments 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 contract 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 may not be available for performance under this order beyond September 30, 2013

. The Government’s obligation for performance under this order beyond September 30, 2013 is subject to the availability of funds from which payment for
services can be ma de. No legal liability on the part of the Government for any payment may arise for performance under this order beyond September 30, 2013 , until funds are made available to the Department for performance. If funds are not made available for performance b eyond September 30, 2013 , 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 $2,094,325 divided b y 1,834 annual departures (36 weekly departures x 52 weeks x 98 percent completion)

. 2 36 arrivals and departures per week multiplied by $1,142 per flight

.

### Appendix C Page 4 of 4

Great Lakes Aviation, Ltd.
Essential Air Service to be Provided at Show Low, Arizona

Effective Period : May 1, 2013 through April 30, 2015
Scheduled Service : Peak: May 1

- October 31 (184 days), 18 weekly nonstop round trips to Los Angeles or Phoenix Off

- peak: N ovember 1

– April 30 (181 days), 12 weekly nonstop round trips to Los Angeles or
Phoenix
Aircraft : 19

- passenger Beechcraft 1900D Rate per Eligible Flight: $ 1, 094 1


### Weekly Ceiling : Peak: $ 39,384 ; Off

- Peak: $26, 256 2

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 significan t elements of the required service, wi thout 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 per iod, it may jeopardize its entire subsidy clai m for the period in question. If the carrier contemplates any such changes beyond the scope of the Order during the applicable period of this rate, it must first notify the Office of Aviation Analysis in writing and receive written approval from the Depar tment 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 service levels, the carrier may cease to provide service to that specific location without regards 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 contract 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 may not be available for performance un der this order beyond September 30, 2013

. The Government’s obligation for performance under this order beyond September 30, 2013 is subject to the availability of funds from which payment for
services can be made. No legal liability on the part of the Go vernment for any payment may arise for performance under this order beyond September 30, 2013 , until funds are made available to the Department for performance. If funds are not made available for performance beyond September 30, 2013 , 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 $1,672,000 divided by 1,529 annual departures [(26 weeks x 36 weekly depart ures) + (26 weeks x 24 weekly departures) x 98 percent completion]

. 2 Peak: 36 arrivals and departures per week multiplied by $1,094 per flight

.

Off

- peak: 24 arrivals and departures per week multiplied by $1,094 per flight.