Order: 2010

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Served: March 31 , 2010



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

Issued by the Department of Transportation

on the 2 6 th of March , 2010

Essential Air S ervice at

P LATTSBURGH, NEW YORK SARANAC LAKE/LAKE PLACID, NEW YORK

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

- OST

- 2003

- 14783
Docket DOT

- OST

- 2000

- 8025

ERRATUM

By this order, the Department is c larifying Order 2010

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- 27 . The Department will pay Hyannis Air Service, Inc., d/b/a Cape Air

, to provide three daily round trips (21 a week) : (a) at Plattsburgh , New York, from March 1 until Colgan Air inaugurates full essentia l air service ; and (b) from March 1 through February 28, 2014

, at Saranac Lake/Lake Placid , New York

. Cape

Air ’ s annual subsidy rate s , subsidies per flight, and weekly ceilings at the two communities

remain unchanged; however, the corr ect ed summar ies of scheduled service are included in Appendix A.

The narrative of Appendix C of Order 2010

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- 27 was internally inconsistent with the subsidy

calculations as to the number of round trips the Department would subsidize at each community

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- either 18 or 21 per week. However, all the subsidy calculations were correctly premised upon a

continuation of its historical 2 1 round trips a week

.

This order is issued under authority delegated in 14 CFR 385.12 (k)(4)

.

ACCORDINGLY,

1. The Department corrects the summar ies of scheduled service for Hyannis Air Service, Inc., d/b/a Cape Air , for the provision of essential air service at Plattsburgh and Saranac Lake/Lake Placid, New York , as described in Appendix A ;- 2

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2 . Th e s e d ocket s will remain open until further order of the Department; and

3 . Docket Operations will serve copies of this order on the parties listed in Appendix B

.

Persons entitled to petition the Department for review of this order under the Department’s Regulation s, 14 CFR 385.50, must file such petitions within ten (10) 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.

By:

TODD M. HOMAN
Director Office of Aviation Analysis

(SEAL)

An electronic version of this document is available on the World Wide Web at www.regulations.govAppendix A Page 1 of 2

Hyannis Air Service, Inc. d/ b/ a Cape Air
Essential Air Service to be Provided at Saranac Lake/ Lake Placid, New York

Effective Period : March 1, 2010, through February 28, 2014.

Scheduled Service : 21 nonstop round trips to Boston each week

Aircraft type : Cessna 402, 9 seats Annual compensation: $1,366,538 Rate per Eligible Flight: $6 43 1 Weekly Ceiling : $27, 006 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 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, t he 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 a vailable 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 $1,366,538 , divided by 2,124 annual departures (6 daily flights x 365 days x

97% completion)

. 2 42 arrivals and departures per week multiplied by $ 654 per flight.Appendix A Page 2 of 2

Hyannis Air Service, Inc. d/ b/ a Cape Air Essential Air Service to be Provided at Plattsburgh, New York

Effective Period : March 1, 2010, until Colgan inaugurates full EAS.

Scheduled Service : 21 nonstop round trips to Boston each week

Aircraft type : Cessna 402, 9 seats Annual compensation: $1,334,262 Rate per Eligible Flight: $628 3 Weekly Ceiling : $26,376 4

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 a n 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 co nsidered 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 contemp lates 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 c ircumstances 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 shal l 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.

3 Annual compensation of $1,334,262 , divided by 2,124 annual departures (6 daily flights x 365 days x

97% completion)

. 4 42 arrivals and departures per week multiplied by $ 628 per flight.Appendix B

SERVICE LIST

Mr. Andrew Bonney Hyannis Air Service

660 Barnstable Road Hyannis, Massachusetts 02601

Mr. Ross Dubarry Airport Manager Adirondack Regional Airport 96 Airport Road Saranac Lake, New York 12983

Mr. Rodney Brown

Interim Airport Manager Plattsburgh International Airport 42 Airport Lane, Suite 201 Plattsburgh, New York 12903