Order: 2010-3-30

 Served: March 25, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 25th of March, 2010

Essential Air Service at

WEST YELLOWSTONE, MONTANA

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

Docket DOT-OST-2003-14626

ORDER SELECTING CARRIER

Summary

By this order, the Department is selecting SkyWest Airlines d/b/a Delta Connection (“SkyWest”)

to continue to provide essential air service (EAS) at West Yellowstone, Montana, at an annual 

subsidy rate of $427,757, for the next two summer seasons from June 1 through September 30, 

2010 and 2011.1

Background

By Order 2008-1-4, January 10, 2008, the Department selected SkyWest to provide subsidized 

EAS at West Yellowstone for the 2008 and 2009 summer seasons at a subsidy rate of $431,996 

for each four-month season. Under that order, SkyWest provided 14 nonstop round trips per 

week to Salt Lake City International Airport (SLC) as Delta Connection, with 30-seat Embraer 

Brasilia aircraft. 

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds.
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In anticipation of the end of the rate term, the Department issued Order 2010-1-1, January 4, 

2010, soliciting proposals to provide efficient EAS, with subsidy support if necessary, at West 

Yellowstone, for the next two summer seasons. 

Proposals

In response to that order, we received proposals from two carriers, SkyWest, the incumbent, and 

Sovereign Air, Inc. (“Sovereign Air”).

SkyWest proposes to continue its historical level of subsidized service of two daily nonstop 

round trips to Salt Lake City as Delta Connection for the next two summers, from June 1, 2010, 

through September 30, 2010, and during the same months in 2011, utilizing 30-passenger 

Embraer Brasilia aircraft for a subsidy of $427,757 for each four-month season. 

Sovereign Air has proposed to operate four daily nonstop round trips flights to Salt Lake City 

using 16-passenger Metroliner III aircraft for a subsidy of $497,935 for each four-month season.

The complete proposals of both carriers may be accessed online at http://www.regulations.gov/ 

by entering “DOT-OST-2003-14626.”

Community and State Comments

On February 16, 2010, we requested community comments regarding the carrier selection at 

West Yellowstone. 

In a March 11 letter to the Department, Jamie Greene, Operations Manager for the Town of West 

Yellowstone (“the Town”) stated that the Town “strongly supports the proposal submitted by 

SkyWest.” He also says “has enjoyed a superb relationship with SkyWest Airlines since 1987 

and appreciates the dependable and important service the airline has provided to West 

Yellowstone and the surrounding area.” The letter also mentions that last summer, “SkyWest 

demonstrated its willingness to work with our community by altering its flight schedule to better 

serve visitors to West Yellowstone.” 

The Department also received a letter from the Montana Department of Transportation (“MDT”) 

stating it is “encouraged to see competition in the market for the West Yellowstone – Salt Lake 

City route.” It commends Sovereign Air for its proposal, but states, “[w]ithout approval of its 

pending application before the USDOT for authority to operate as an air carrier, and knowing the 

application has been in process for over one year, MDT cannot recommend its selection with the 

close service start-up date of June 1, 2010.” It says that SkyWest has served the region with 

“efficient service, personnel, and excellent dialogue with the airport and community on air 

service issues,” and it supports SkyWest’ service option for the next two seasons.

Decision

Sovereign Air does not have the requisite operating authority from either the Federal Aviation 

Administration or the Department of Transportation to operate its proposed service. Moreover, 

there was no community support for the carrier’s proposal, and the requested subsidy is greater 

than SkyWest’s.
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SkyWest has served West Yellowstone for many years and continues to provide them with 

reliable essential air service. The community supports SkyWest and we find that its subsidy 

request is reasonable. Therefore, we will reselect SkyWest, operating as Delta Connection with 

30-seat Embraer Brasilia aircraft, to provide service from West Yellowstone to Salt Lake City, 

for the next two summer seasons, at an annual subsidy rate of $427,757. 

We shall make SkyWest’s selection at West Yellowstone contingent upon the Department’s 

receiving properly executed certifications from SkyWest that it is in compliance with the 

Department’s regulations regarding drug-free workplaces and nondiscrimination, as well as the 

regulations governing lobbying activities.

Carrier Fitness

49 U.S.C. 41737(b) requires that we find an air carrier fit, willing, and able to provide reliable 

service before we may subsidize it to provide essential air service. SkyWest is subject to the 

Department’s continuing fitness requirements, and no information has come to our attention that 

would cause us to question the 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 

finding. We therefore conclude that the carrier remains fit to conduct the operations proposed 

here.

This order is issued under authority delegated in 49 CFR 1.56a(f).

ACCORDINGLY,

1. We select SkyWest Airlines d/b/a Delta Connection to provide essential air service at West 

Yellowstone, Montana;

2. We set the final rate of compensation for SkyWest Airlines d/b/a Delta Connection, for the 

provision of essential air service at West Yellowstone, Montana, as described in Appendix C;

3. We direct SkyWest Airlines d/b/a Delta Connection. 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 documentation shall be retained for seven years 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 carrier may forfeit its compensation for any 

claim that is not supported under the terms of this order;

4. We find that SkyWest Airlines d/b/a Delta Connection continues to be fit, willing and able to 

operate as a certificated carrier and capable of providing reliable essential air service at West 

Yellowstone, Montana; 

5. This docket will remain open until further order of the Department; and
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6. We will serve copies of this order on the Mayor and Operations Manager of the Town of 

West Yellowstone, the Montana Department of Transportation, Aeronautics Division, SkyWest

Airlines, and Sovereign Air.

By:

SUSAN L. KURLAND

Assistant Secretary

for Aviation and International Affairs

(SEAL)

An electronic version of this document is available on the Internet at

http://www.regulations.gov
Appendix A

AREA MAP
Appendix B
Appendix C

SkyWest Airlines d/b/a Delta Connection

Essential Air Service to be Provided at West Yellowstone, Montana

Effective Period: June 1 through September 30, 2010 and 2011

Scheduled Service: 14 nonstop round trips to Salt Lake City International Airport each week

Aircraft: Embraer Brasilia, 30 seats

Rate per Eligible Flight: $8951

Weekly Ceiling: $25,0602

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 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 are not currently available for performance under this order beyond September 30, 2010. The Department’s 

obligation for performance under this order beyond September 30, 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 September 30, 2010, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond September 30, 2010, 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 must be submitted within 60 days of the last day of service provided under this order.

 1 Annual compensation of $427,757, divided by 478 annual departures (122 service days x 4 flights per day x 98 

percent completion).

2 28 flights per week multiplied by $895 per flight.