Order: 2011-6-31

Served: June 30, 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 30th day of June, 2011

Essential Air Service at

FORT DODGE AND 

MASON CITY, IOWA

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

DOCKET DOT-OST-2001-10682

DOCKET DOT-OST-2001-10684

ORDER REQUESTING PROPOSALS

Summary

By this order, the Department is requesting proposals by August 9, 2011, from carriers 

interested in providing essential air service (EAS) at Fort Dodge and Mason City, Iowa,

for a new two-year period, beginning November 1, 2011, with or without subsidy. 

Background

By Order 2011-6-7, the Department selected Mesaba Aviation, Inc., d/b/a Delta Connection

(Mesaba) to provide subsidized EAS to Fort Dodge and Mason City, Iowa, for the five-month 

period from June 1, 2011, through October 31, 2011. Under that order, the Department 

authorized subsidy for Mesaba consisting of fourteen nonstop round trips per week to 

Minneapolis for both Fort Dodge and Mason City. All of the service is provided with 34-seat 

Saab 340 aircraft, for annual subsidy rates of $1,910,995 at Fort Dodge and $1,017,545 at 

Mason City. 

As discussed in Order 2011-6-17, we selected Mesaba for the five-month period it 

proposed. While it is unusual for the Department to select a proposal for only a fivemonth period, rather than the typical two years, we found that there were compelling 

reasons to do so.1

Request for Proposals

As the end of the current rate term approaches, we are hereby requesting proposals from 

carriers interested in providing service at Fort Dodge and Mason City, with or without 

subsidy, for the two-year period beginning November 1, 2011. Carriers should file their

proposals by August 9. Staff will then docket the proposals, thereby making them public. 

Shortly afterwards, we will provide a summary of the proposals to the communities and State 

and ask them to submit their final comments. We will give full consideration to all proposals 

filed in a timely manner.2

 1 See Order 2011-6-6 for a complete discussion.

 

2Carriers should not expect the Department to accept late fillings. In cases where a carrier proposes to 

provide basic essential air service without subsidy and we determine that service can be provided reliably
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Interested carriers should prepare their proposals with every expectation that their initial 

proposals will also be their final and only proposals. We retain the discretion to negotiate 

proposals with carriers when we deem it desirable. We also retain the discretion to reject 

outright all unreasonable or unrealistic proposals and, if necessary, solicit a new round of 

proposals. However, we anticipate that negotiation or rejection will remain 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 prescribe a precise format for 

their proposals. 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 detail they wish to present; however, they might want to 

include proposed schedules as well as supporting data for their subsidy requests, such as 

projected block hours, revenues, and expenses. We strongly encourage clear, welldocumented proposals that will facilitate their evaluation by the affected communities

and the Department. We do not anticipate any change in our selection criteria, or in the 

general provisions governing subsidy payments for essential air service.3 

With specific respect to Fort Dodge and Mason City, we expect proposals consisting of

two nonstop round trips per day (14 a week) at each community if 30- or 34-seat 

equipment is provided, or three nonstop round trips a day (18 a week) with 19-seat 

aircraft, and more frequencies with smaller aircraft. We may subsidize additional 

frequencies if the affected community is served in conjunction with another community. 

As always, staff will work with the carrier to ensure service and subsidy is reasonable.

We encourage proposals that meet the communities’ requirements in an efficient manner. 

Carriers are also welcome to propose more than one service option, if they choose; they

need not limit themselves to the current service pattern if they envision other, potentially

more attractive service possibilities -- different hubs, or longer terms for the contracted

service -- with subsidy requirements that remain competitive.

We encourage carriers to work with the communities in advance of the due date for 

proposals when proposals can still be adjusted so that they can craft them to best meet the 

communities’ needs. In addition, carriers should be very clear as to whether a specific 

community’s proposal may be considered on a stand-alone basis, or whether it should be 

considered as part of a larger, inseparable package with another community. As always, 

we will fully consider the communities’ views before making a long-term carrierselection decision. 

 

without such compensation, we typically do not proceed with the carrier-selection case. Instead, we 

generally rely on that carrier’s subsidy-free service as proposed.

3 In selecting a carrier to provide subsidized essential air service in Iowa, 49 U.S.C. 41733(c) (1) directs us 

to consider five factors. (1) service reliability; (2) contractual and marketing arrangements with a larger 

carrier at the hub; (3) interline arrangements with a larger carrier at the hub; (4) community views; and 

In addition, The Consolidated Appropriations Act, 2008, Public Law 110-161, 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 inception 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 contains those general provisions.
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Filing Format

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 

Regulations.gov, each page should be formatted to be viewed online.

Historical Traffic

In order to assist carriers in making their traffic and revenue projections, we have 

included historical traffic for the communities in Appendix B. For the year ended 

March 31, 2011, the most recent annual period, Fort Dodge generated an average of 24.2

enplaned passengers per day and Mason City, an average of 38.3 enplanements per day.

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 to support essential air service 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 rate term must 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, 

the selected carrier will be required to submit them in order to receive subsidy. Interested 

carriers requiring more detailed information regarding these requirements, as well as copies of 

the certifications, should contact the Office of Aviation Analysis at (202) 366-5903. The 

Department is prohibited from paying subsidy to carriers that do not submit these documents.

Community Comments

Civic officials and the State are welcome to submit comments on the proposals at any time. 

As noted earlier, we will provide a summary of the proposals to the civic parties and ask 

them to submit their final comments shortly after August 9, the due date for carrier 

proposals.

This order is issued under authority delegated in 49 CFR 1.56a(f) and re-delegated to the 

Director, Office of Aviation Analysis.

ACCORDINGLY,

1. The Department requests proposals from carriers interested in providing essential air 

service at Fort Dodge and Mason City, Iowa. Carriers should submit their proposals, with 

subsidy if necessary, by August 9, 2011. Proposals should be emailed to EAS@dot.gov, 

with the title “Proposal to Provide Essential Air Service at Fort Dodge and Mason City, 

Iowa, Dockets DOT-OST-2001-10682 and 10684, respectively.” Questions regarding 

filings may be directed to Kevin Adams at 202-366-1047 or Kevin.Adams@dot.gov;

2. These Dockets will remain open until further order of the Department; and

 4 The certifications are available on the web at http://ostpxweb.dot.gov/aviation/index.html.
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3. We will serve this order on the service list for this Docket.

Persons entitled to petition the Department for review of this order under the 

Department’s Regulations, 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

http://www.regulations.gov
Appendix A

Nonstop Great Circle Miles from Fort Dodge (FOD)

Minneapolis (MSP) 168

Chicago (ORD) 325

Milwaukee (MKE) 321

Omaha (OMA) 123

Mason City (MCW) 60

Des Moines (DSM) 75

Cedar Rapids (CID) 136

Nonstop Great Circle Miles from Mason City (MCW)

Minneapolis (MSP) 120

Chicago (ORD) 288

Milwaukee (MKE) 275

Omaha (OMA) 184

Fort Dodge (FOD) 60

Des Moines (DSM) 113

Cedar Rapids (CID) 121

This map is provided by Sabre® AirVisionTM Profit Essentials and is being used with express permission of the 

copyright holder, Sabre Airline Solutions®.
Appendix B

Passengers, Ford Dodge and Mason City, Iowa, T-100 Market Report

Fort Dodge, Iowa (FOD) Mason City, Iowa, (MCW)

Year Month Enplaned Deplaned O & D Enplaned Deplaned O & D

2008 4 551 468 1,019 929 988 1,917

2008 5 530 538 1,068 1,012 982 1,994

2008 6 555 514 1,069 937 1,016 1,953

2008 7 534 543 1,077 1,217 1,155 2,372

2008 8 445 513 958 1,003 995 1,998

2008 9 447 400 847 900 919 1,819

2008 10 420 434 854 941 931 1,872

2008 11 454 425 879 919 875 1,794

2008 12 470 478 948 957 910 1,867

2009 1 440 388 828 840 818 1,658

2009 2 373 363 736 955 796 1,751

2009 3 378 435 813 831 934 1,765

YE 3-31-09 5,597 5,499 11,096 11,441 11,319 22,760

2009 4 326 341 667 716 764 1,480

2009 5 441 430 871 876 858 1,734

2009 6 519 574 1,093 987 1,078 2,065

2009 7 536 504 1,040 1,114 1,041 2,155

2009 8 444 501 945 999 940 1,939

2009 9 483 445 928 843 784 1,627

2009 10 437 459 896 770 754 1,524

2009 11 446 432 878 795 795 1,590

2009 12 537 476 1,013 858 797 1,655

2010 1 404 376 780 770 725 1,495

2010 2 414 475 889 885 740 1,625

2010 3 458 635 1,093 878 944 1,822

YE 3-31-11 5,445 5,648 11,093 10,491 10,220 20,711

2010 4 416 440 856 805 796 1,601

2010 5 552 640 1,192 1,053 980 2,033

2010 6 660 697 1,357 1,203 1,278 2,481

2010 7 760 721 1,481 1,461 1,325 2,786

2010 8 751 792 1,543 1,351 1,333 2,684

2010 9 834 825 1,659 1,209 1,161 2,370

2010 10 831 758 1,589 1,230 1,198 2,428

2010 11 748 720 1,468 1,231 1,197 2,428

2010 12 888 812 1,700 1,279 1,188 2,467

2011 1 763 767 1,530 1,176 1,135 2,311

2011 2 717 654 1,371 1,013 928 1,941

2011 3 911 987 1,898 1,191 1,274 2,465

YE 3-31-11 8,831 8,813 17,644 14,202 13,793 27,995
Appendix C

Example of General Terms and Conditions for Essential Air Service

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 communities.

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 carrier 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 currently available for performance under this solicitation beyond 

[DATE]. The Department’s obligation for performance under this solicitation beyond 

[DATE], is contingent upon 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 [DATE], until funds are 

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

performance beyond [DATE], the carrier will receive notice in writing by the 

Department.

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

provided under this order