### Order 2013

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- 2 Served: November 1, 2013


## UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued by the Department of Transportation on the 1 st 

### of November, 2013

Essential Air Service at DODGE CITY, KANSA S GARDEN CITY, KANSAS GREAT BEND, KANSAS HAYS, KANSAS LIBERAL , KANSAS Under 49 U.S.C. 41731 et seq

. DOCKET DOT

- OST

- 1998
- 3502 DOCKET DOT

- OST

- 1998
- 3503 DOCKET DOT

- OST

- 1998
- 3496 DOCKET DOT

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- 3497 DOCKET DOT

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- 3498

ORDER REQUESTING PROPOSA LS Summary By this Order , the Department is requesting proposals by December 2 , 2013 , from carriers interested in providing Essential Air Service (EAS) at Dodge City, Garden City, Great Bend, Hays, and /or Liberal , Kansas , for the period beginning May 1, 2014 , when the current rates expire, for two or more years , with or without subsidy. Background Order 201 1

- 10

- 24 , October 31 , 201 1 , tentatively selected American Eagle Airlines (American Eagle ) to provide EAS at Garden City, Kansas, consisting of 14 non stop round trips per week with regional jet aircraft to Dallas

- Fort Worth International Airport (DFW), for $2,919,026 annually. 1 

### Order 2011

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- 14, November 14, 2011, finalized that Order for all five communities.
Order 2011

- 10

- 24 also tentatively selecte d Great Lakes Airlines, Ltd. (Great Lakes) to provide EAS between Dodge City, Great Bend, Hays, and Liberal, and Denver, all with 19

- seat Beech 1900 aircraft, for a total combined subsidy of $7,489,809. At Dodge City, the rate was tentatively set at $1,68 8,598 annual subsidy for 17 nonstop round trips per week. 2 

### At Great Bend and Hays the rate was tentatively set at a combined total of $3,246,061 annual subsidy , with Great Bend to receive 1 2 one

- stop round trips per week

1 

### The carr ier required a total of $3,252,359 annual subsidy, but Garden City and the State of Kansas committed $333,333 annual subsidy to decrease the cost to the EAS program of American Eagle ’s subsidized service. 2 

### The Order recognized that Garden City and Dodge City would benefit on a regional basis. Because t hose airports are 43 miles apart, people from Garden City would be able to drive to Dodge City for nonstop service to Denver, and people from Dodge City would be able to drive to Garden City for nonstop se rvice to Dallas

.

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and Hays 24 nonstops per week. At Liberal, the rate was tentatively set at $2,555,150 annual subsidy for 18 nonstop round trips per week. The rate term for all of the communities was set from when American Eagle inaugurated service at Garden City through the end of the 24 th 

### month thereaf ter. American Eagle inaugurated service on April 3, 2012, thus making April 30, 2014, the expiration date of the rate for all five communities. Request for Proposals As the end of the current rate term s approach, we are requesting proposals from carriers int erested in providing EAS at Dodge City, Garden City, Great Bend, Hays, and /or Liberal , with or without subsidy, for the period beginning May 1, 2014 . Carriers should file their proposals by December 2 , 2013

. S taff will then docket the proposals, ther eby making them public. Shortly afterwards, we will provide copies of all timely filed proposals to the communit ies and request community comments by a specified date . We will give full consideration to all proposals filed in a timely manner. 3 

### Intereste d 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 discret ion 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 intereste d 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 s ubsidy being requested. The applicants can make their own judgments as to the level of detail they wish to present; however, we recommend that they include information concerning proposed schedules and projected block hours. In addition, applicants are u rged to provide financial data supporting their subsidy requests, including information on their projected expenses and revenues. We strongly encourage clear, well

- documented proposals that will facilitate their evaluation by the communit ies and the Depar tment. 4 

### As always, we will formally solicit each community ’ s views on any service options we receive before making a long

- term , carrier

- selection decision. The communit ies and air

3 Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide E AS without subsidy and we determine that basic EAS , required by 49 U.S.C. §41732 , can be reliably provided without such comp ensation, we typically do not proceed with the carrier

- selection case. Instead, we simply rely on that carrier’s subsidy

- free service as proposed. 4 In selecting a carrier to provide subsidized EAS for an eligible place not in Alaska, 49 U.S.C. § 41733(c) 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 (5) whether the carrier has in cluded a plan in its proposal to market the service. In addition , The Consolidated and Further Continuing Appropriations Act, 2012, Public Law No. 112

- 55, and continued by the Full

- Year Continuing Appropriations Act, 2013, Public Law No. 113

- 6, and Continu ing Appropriations Act, 2014, Public Law No. 113

- 46, 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 EAS 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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carrier s are encouraged to work together in advance of the due date for proposals to craft service pattern s that are both desirable to the communit ies and meet the operational needs of the airlines, as carriers cannot amend their proposal s after the due date. We encourage proposals that meet the communit ies’ requirements in a n efficient manner. The table below outlines the service required by Order 2011

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- 14, and the frequency of nonstop service that the Department is requesting with different size aircraft if aircraft other than what is currently used to serve the communi ties is proposed . If intermediate stops were proposed, additional frequencies could be contemplated.

Current Service Required Required Nonstop Service Weekly Frequency Stops Hubs Aircraft 19-Seaters 30-seaters Garden City 14 0 DFW Regional Jets 24 18

Great Bend 12 1 DEN 19-seaters 12 5 12
Dodge City 17 0 DEN 19-seaters 17 12 Hays 24 0 DEN 19-seaters 18 5 12 Liberal 18 0 DEN 19-seaters 18 12

5 

### We encourage proposals that meet those requirements in an efficient manner. Carriers are also welcome to propose more than one service option, if th ey choose. They need not limit themselves to the requirements specified above if they envision other, potentially more attractive service possibilities

– different hubs, for example

– with subsidy requirements that remain competitive. Filing Format Carri er proposals should be submitted to the Department with all materials merged into a single document. In addition, because the document will be published on
www.r egulations.gov, each page should be formatted to be viewed online.
Historical Traffic In o rde r to assist carriers in making traffic and revenue projections, we have included historical traffic for the communit ies in Appendi x B for the most recent annual periods. For the most recent 12

- month period for which data are available, Dodge City had 18.7 enplanements per day; Garden City, 72.7; Great Bend, 3.1; Hays, 29.2; and Liberal, 18.9

. Other Carrier Requirements The Department is responsible for implementing various Federal statutes governing lobbying activities, drug

- free workplaces , and nondisc rimination. 6 

### Consequently, all carriers receiving Federal subsidy to support EAS must certify that they are in compliance with Department regulations regarding drug

- free workplaces and nondiscrimination, and those carriers whose

5 

### Grea t Bend is guaranteed 12 round trips per week, the statutory minimum. Hays currently receives 24 nonstops per week, but that is a result of the community’s upline service to Great Bend. 6 The certifications are available on the web at http://www.dot.gov/policy/aviation

- policy/small

- community

- rural

- air

- service/essential

- air

- service

.

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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 o rder 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 s 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 December 2 , 2013, the due date for carrier proposals.

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

- delegated to the Directo r, Of fice of Aviation Analysis. ACCORDINGLY,

1

. The Department requests proposals from carriers interested in providing EAS at , Dodge City, Garden City, Great Bend, Hays, and /or Liberal , Kansas . Carriers should submit proposals, with subsidy if necessary, b y December 2 , 2013 . Proposals should be emailed to EAS@dot.gov, with the title “Proposal (s) to Provide EAS at Dodge City, Garden City, Great Bend, Hays, and /or Liberal , Kansas ” 7 

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2

. Th ese D ocket s will remain open until further Order of the Department; and

3 . We will serve this Order on the s ervice l ist for th ese Docket s , and on the civic officials of Dodge City, Garden City, Great Bend, Hays, and Liberal, Kansas; Persons entitled to petition the Department for review of this Order under the Department ’s Regulations, 14 CFR Part 385. 31 , must file such petitions within seven ( 7 ) days after the date of service of this Order

.

7 Questions regarding filings may be directed to Kevin Adams at 202

- 366

- 1047 or Kevin.Adams@dot.gov

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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 at http://www.regulations.gov

### Appendix A

Nonstop Great Circle Miles: Dallas (DFW) Wichita (ICT) LBL, Liberal 362 GBD, Great Bend 91 DDC, Dodge City 374 HYS, Hays 130 GBD, Great Bend 390 DDC, Dodge City 139 GCK, Garden City 404 GCK, Garden City 181 HYS, Hays 429 LBL, Liberal 199

Denver (DEN ) Miscellaneous GCK, Garden City 250 HYS

- GBD 41 LBL, Liberal 279 GCK

- DDC 43 DDC, Dodge City 292 GCK

- LBL 62 HYS, Hays 297 DDC

- GBD 72 GBD, Great Bend 329 DDC

- HYS 83Appendix B-1 Historical Traffic between Dodge City, Kansas (DDC), and Hubs Kansas City (MCI) and Denver (DEN) Passengers Year Month Hub Origin Dest. O&D 2010 9 DEN 282 216 498 2010 9 MCI 67 71 138 2010 10 DEN 267 230 497 2010 10 MCI 47 63 110 2010 11 DEN 273 263 536 2010 11 MCI 64 85 149 2010 12 DEN 282 237 519 2010 12 MCI 71 98 169 2011 1 DEN 255 233 488 2011 1 MCI 35 54 89 2011 2 DEN 220 224 444 2011 2 MCI 16 5 21 2011 3 DEN 351 365 716 2011 4 DEN 278 261 539 2011 5 DEN 343 329 672 2011 6 DEN 308 336 644 2011 7 DEN 377 363 740 2011 8 DEN 300 351 651 YE 8/31/11 3,836 3,784 7,620
2011 9 DEN 280 313 593 2011 10 DEN 296 342 638 2011 11 DEN 387 333 720 2011 12 DEN 373 335 708 2012 1 DEN 311 344 655 2012 2 DEN 284 320 604 2012 3 DEN 377 389 766 2012 4 DEN 446 486 932 2012 5 DEN 605 574 1,179 2012 6 DEN 548 527 1,075 2012 7 DEN 514 571 1,085 2012 8 DEN 522 517 1,039 YE 8/31/12 4,943 5,051 9,994
2012 9 DEN 490 502 992 2012 10 DEN 460 462 922 2012 11 DEN 475 462 937 2012 12 DEN 521 491 1,012 2013 1 DEN 415 477 892 2013 2 DEN 383 360 743 2013 3 DEN 519 512 1,031 2013 4 DEN 396 436 832 2013 5 DEN 545 505 1,050 2013 6 DEN 524 513 1,037 2013 7 DEN 579 591 1,170 2013 8 DEN 542 548 1,090 YE 8/31/13 5,849 5,859 11,708 Source: T-100 Market ReportAppendix B-2 Historical Traffic between Great Bend, Kansas (GBD), and Hub (Denver) Passengers Year Month Hub Origin Dest. O&D 2010 9 DEN 56 72 128 2010 10 DEN 89 65 154 2010 11 DEN 78 87 165 2010 12 DEN 89 74 163 2011 1 DEN 52 59 111 2011 2 DEN 48 53 101 2011 3 DEN 79 82 161 2011 4 DEN 52 63 115 2011 5 DEN 103 81 184 2011 6 DEN 100 107 207 2011 7 DEN 108 116 224 2011 8 DEN 95 96 191 YE 8/31/11 949 955 1,904
2011 9 DEN 102 93 195 2011 10 DEN 85 83 168 2011 11 DEN 105 93 198 2011 12 DEN 84 78 162 2012 1 DEN 80 92 172 2012 2 DEN 67 77 144 2012 3 DEN 95 85 180 2012 4 DEN 71 72 143 2012 5 DEN 63 72 135 2012 6 DEN 82 93 175 2012 7 DEN 80 71 151 2012 8 DEN 66 89 155 YE 8/31/11 980 998 1,978
2012 9 DEN 86 84 170 2012 10 DEN 68 79 147 2012 11 DEN 72 70 142 2012 12 DEN 95 90 185 2013 1 DEN 69 78 147 2013 2 DEN 77 105 182 2013 3 DEN 77 69 146 2013 4 DEN 72 80 152 2013 5 DEN 80 93 173 2013 6 DEN 80 85 165 2013 7 DEN 91 91 182 2013 8 DEN 77 69 146 YE 8/31/11 944 993 1,937

Source: T-100 Market ReportAppendix B-3 Historical Traffic between Garden City, Kansas (GCK), and Hubs Kansas City (MCI) and Denver (DEN) Passengers Year Month Hub Origin Dest. O&D 2010 9 DEN 664 668 1,332 2010 9 MCI 80 70 150 2010 10 DEN 707 718 1,425 2010 10 MCI 91 99 190 2010 11 DEN 719 701 1,420 2010 11 MCI 108 112 220 2010 12 DEN 802 751 1,553 2010 12 MCI 103 94 197 2011 1 DEN 667 711 1,378 2011 1 MCI 72 73 145 2011 2 DEN 704 701 1,405 2011 2 MCI 12 10 22 2011 3 DEN 868 851 1,719 2011 4 DEN 806 774 1,580 2011 5 DEN 987 997 1,984 2011 6 DEN 936 941 1,877 2011 7 DEN 870 846 1,716 2011 8 DEN 815 820 1,635 YE 8/31/11 10,011 9,937 19,948

2011 9 DEN 832 807 1,639 2011 10 DEN 866 872 1,738 2011 11 DEN 932 962 1,894 2011 12 DEN 945 884 1,829 2012 1 DEN 883 847 1,730 2012 2 DEN 806 833 1,639 2012 3 DEN 924 917 1,841 2012 4 DEN 54 88 142 2012 4 DFW 961 892 1,853 2012 5 DFW 1,418 1,259 2,677 2012 6 DFW 1,521 1,571 3,092 2012 7 DFW 1,649 1,633 3,282 2012 8 DFW 1,793 1,862 3,655 YE 8/31/12 13,584 13,427 27,011

2012 9 DFW 1,767 1,641 3,408 2012 10 DFW 1,880 1,842 3,722 2012 11 DFW 1,972 1,897 3,869 2012 12 DFW 1,872 1,776 3,648 2013 1 DFW 1,741 1,767 3,508 2013 2 DFW 1,631 1,553 3,184 2013 3 DFW 1,854 1,887 3,741 2013 4 DFW 1,850 1,776 3,626 2013 5 DFW 2,133 2,033 4,166 2013 6 DFW 1,986 2,094 4,080 2013 7 DFW 2,121 2,171 4,292 2013 8 DFW 2,099 2,137 4,236 YE 8/31/13 22,906 22,574 45,480
Source: T-100 Market.Appendix B-4 Historical Passengers Between Hays , Kansas (HYS) and Hub (Denver) Passengers Year Month Hub Origin Dest. O&D 2010 9 DEN 662 698 1,360 2010 10 DEN 741 688 1,429 2010 11 DEN 694 757 1,451 2010 12 DEN 811 640 1,451 2011 1 DEN 562 691 1,253 2011 2 DEN 551 519 1,070 2011 3 DEN 744 754 1,498 2011 4 DEN 724 670 1,394 2011 5 DEN 943 861 1,804 2011 6 DEN 998 943 1,941 2011 7 DEN 984 942 1,926 2011 8 DEN 945 1,152 2,097 YE 8/31/11 9,359 9,315 18,674
2011 9 DEN 858 885 1,743 2011 10 DEN 786 777 1,563 2011 11 DEN 814 840 1,654 2011 12 DEN 971 715 1,686 2012 1 DEN 649 864 1,513 2012 2 DEN 717 690 1,407 2012 3 DEN 793 787 1,580 2012 4 DEN 726 742 1,468 2012 5 DEN 1,050 726 1,776 2012 6 DEN 684 733 1,417 2012 7 DEN 703 727 1,430 2012 8 DEN 751 925 1,676 YE 8/31/12 9,502 9,411 18,913
2012 9 DEN 659 686 1,345 2012 10 DEN 782 786 1,568 2012 11 DEN 827 821 1,648 2012 12 DEN 975 767 1,742 2013 1 DEN 645 853 1,498 2013 2 DEN 528 505 1,033 2013 3 DEN 841 817 1,658 2013 4 DEN 713 716 1,429 2013 5 DEN 1,043 835 1,878 2013 6 DEN 818 791 1,609 2013 7 DEN 773 716 1,489 2013 8 DEN 571 810 1,381 YE 8/31/13 9,175 9,103 18,278 Source: T-100 Market ReportAppendix B-5 Historical Passengers Between Liberal , Kansas (LBL) and Hub (Denver) Passengers Year Month Hub Origin Dest. O&D 2010 9 DEN 358 372 730 2010 10 DEN 387 380 767 2010 11 DEN 416 404 820 2010 12 DEN 396 346 742 2011 1 DEN 307 306 613 2011 2 DEN 279 306 585 2011 3 DEN 412 417 829 2011 4 DEN 340 351 691 2011 5 DEN 438 428 866 2011 6 DEN 446 402 848 2011 7 DEN 439 442 881 2011 8 DEN 463 459 922 YE 8/31/11 4,681 4,613 9,294
2011 9 DEN 422 435 857 2011 10 DEN 409 409 818 2011 11 DEN 428 445 873 2011 12 DEN 484 442 926 2012 1 DEN 368 381 749 2012 2 DEN 402 411 813 2012 3 DEN 498 448 946 2012 4 DEN 439 441 880 2012 5 DEN 580 593 1,173 2012 6 DEN 552 527 1,079 2012 7 DEN 504 476 980 2012 8 DEN 438 479 917 YE 8/31/11 5,524 5,487 11,011
2012 9 DEN 402 403 805 2012 10 DEN 426 455 881 2012 11 DEN 485 488 973 2012 12 DEN 487 452 939 2013 1 DEN 416 473 889 2013 2 DEN 387 363 750 2013 3 DEN 564 602 1,166 2013 4 DEN 486 480 966 2013 5 DEN 583 559 1,142 2013 6 DEN 486 508 994 2013 7 DEN 619 599 1,218 2013 8 DEN 538 572 1,110 YE 8/31/11 5,879 5,954 11,833
Source: T-100 Market

### App endix 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 i n 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 la nding 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 subs idy. 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 bey ond the scope of the Order during the applicable period of th is 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 De partment 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 su bsidy 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 D epartment 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 payme nts 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 may not be available for performance under this Order beyond [DATE]. The Government’s o bligation for performance under this Order beyond [DATE], 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 this Order beyo nd [DATE], until funds are made available to the Department for performance. If funds are not made available for performance beyond [DATE], the Department will provide notice in writing to the carrier. 

### All claims for payment, including any amended claim s, must be submitted within 90 days of the last day of the month for which compensation is being claimed. For example, claims for service provided in July must be filed by October 31; August claims must be submitted by November 30, and so on.