Order: 2014-2-6

Served: February 6, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 6th of February, 2014

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is requesting proposals from air carriers interested in providing 

Essential Air Service (EAS) at Altoona and/or Johnstown, Pennsylvania, for a new contract

period beginning August 1, 2014, with or without subsidy. (See Appendix A for a map). Air 

carriers should file their proposals no later than March 11, 2014.

Background

By Order 2012-4-30 (April 26, 2012), the Department selected Silver Airways (Silver) to 

provide EAS at Altoona and Johnstown to Washington Dulles International Airport

(Washington Dulles) using 34-passenger Saab 340 aircraft, for a two-year period beginning 

when Silver inaugurated full EAS at both communities through the end of the 24th month 

thereafter. Silver inaugurated service to Altoona and Johnstown on August 1, 2012, setting an 

expiration of July 31, 2014. The combined annual subsidy for both communities is

$3,997,187 and both communities receive 18 weekly nonstop and one-stop round trips over an 

Altoona-Johnstown-Washington Dulles or a Johnstown-Altoona-Washington Dulles routing.

The complete public file for EAS at Altoona and Johnstown may be accessed online through 

the Federal Dockets Management System at: www.regulations.gov by entering the 

community’s respective docket number in the “Search for Rules, Comments, Adjudications, 

or Supporting Documents” field.

Essential Air Service at

ALTOONA, PENNSYLVANIA

JOHNSTOWN, PENNSYLVANIA

Under 49 U.S.C. § 41731 et seq.

Docket DOT-OST-2002-11446

Docket DOT-OST-2002-11451
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Special discussion concerning Altoona

The Department is prohibited from subsidizing air service at a community where the subsidy 

per passenger exceeds $200, unless the community is more than 210 highway miles from the 

nearest large or medium hub airport. Altoona is 112 miles from Pittsburgh International 

Airport (a medium hub airport) and based on FY2013 data (October 1, 2012, through 

September 30, 2013), 7,830 passengers were enplaned and deplaned at Altoona. The annual 

subsidy amount for Altoona is $1,998,594. Therefore, the subsidy per passenger at Altoona is 

$255, above the subsidy per passenger ceiling. Rather than terminate the community’s 

eligibility at this stage, the Department will solicit proposals for EAS and evaluate all 

proposals submitted before either committing to a two-year contract or making a final 

determination on Altoona’s continuing eligibility to receive EAS in light of its current subsidy 

per passenger being above the $200 ceiling. Before the due date for proposals, we expect the 

community to work aggressively with all potential applicants to mitigate some of the risks that 

the air carriers may face in an attempt to lower their subsidy levels. We also expect air 

carriers to detail in their proposals how they will work with the community in getting the 

subsidy per passenger under the $200 cap.

Request for Proposals

As the end of the current contract approaches, the Department is requesting proposals from air 

carriers interested in providing EAS at Altoona and/or Johnstown, with subsidy support if 

necessary, for a new contract period beginning August 1, 2014. Carriers should file their 

proposals no later than March 11, 2014. Staff will then docket the proposals, thereby making 

them public. Shortly afterwards, we will provide a summary of the proposals to the 

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

all proposals that are timely filed.1

Interested air carriers should prepare their proposals with every expectation that their initial 

proposals will represent their final and only proposals. However, we retain the discretion to 

negotiate proposals with carriers when we deem it desirable; in such cases, of course, we will 

give all applicants the same opportunity. We also retain the discretion to reject outright all 

unreasonable or unrealistic proposals and re-solicit a new round of proposals. However, 

negotiation and rejection are 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. Air 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. 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, we recommend they include information concerning proposed schedules 

 1 Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide 

EAS without subsidy and we determine that basic EAS, as required by 49 U.S.C. § 41732, can be reliably 

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

simply rely on that carrier’s subsidy-free service as proposed.
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and projected block hours. In addition, applicants are encouraged 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 affected communities and the Department.2

Proposals should provide sufficient capacity to accommodate historical levels of traffic. In 

order to assist air carriers in developing traffic and revenue projections for their proposals, we 

have provided a summary of historical passengers in Appendix B. During the year ended 

September 30, 2013, Altoona averaged 13 enplanements per day and Johnstown averaged 20

enplanements per day. For Altoona and Johnstown, the Department expects proposals to offer 

service to a large- or medium-hub airport that provides numerous connecting opportunities to 

the national air transportation system. If air carriers choose to serve both communities on 

shared flights, we expect proposals consisting of three round trips on weekdays and weekends 

(18 a week) with 30 to 50-seat aircraft, or four round trips (24 a week) with 19-seat aircraft. 

Should air carriers wish to serve the communities nonstop to/from the hub airport, we would 

expect proposals for two weekday and two weekend round trips (12 a week) using 30-seat or 

larger aircraft for each community. We would also accept proposals for three round trips each 

weekday and weekend (18 a week) using 19-passenger aircraft. We will also accept proposals 

using 8/9-seat aircraft with additional frequencies, though we would expect service to be 

nonstop to/from the hub airport.

Air carriers are also welcome to propose more than one service option, if they choose. They

also need not limit themselves to these requirements if they envision other, potentially more 

attractive service possibilities -- different hubs or length of contract, for example -- with 

subsidy requirements that remain competitive.

Community Comments

The communities are welcome to submit comments at any time. We encourage prospective 

applicants to contact the communities before they submit their proposals so that they can tailor 

them to the communities’ needs, as they will not be able to amend them after the due date. As 

noted earlier, we will provide a summary of the proposals to the civic parties shortly after the 

deadline for carrier proposals, and ask them to submit their final comments.

 2 In selecting a carrier to provide subsidized EAS for an eligible place not in Alaska, 49 U.S.C. § 41733(c)(1) 

directs us to consider five factors: (a) service reliability; (b) contractual and marketing arrangements with a 

larger carrier at the hub; (c) interline arrangements with a larger carrier at the hub; (d) community views, giving 

substantial weight to the views of the elected officials representing the users; and (e) whether the carrier has 

included a plan in its proposal to market its service to the community. In addition, the Consolidated 

Appropriations Act, 2014, Public Law No. 113-76, 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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Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.3 Consequently, all carriers receiving 

Federal subsidy for EAS 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 contract 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, all carriers that plan to submit 

proposals involving subsidy should be aware that the selected carrier will be required to 

complete the required certifications. Interested carriers requiring more detailed information 

regarding these requirements should contact the Office of Aviation Analysis at 

(202) 366-5903.4

This Order is issued under authority delegated in 49 CFR Part 1.25a(b) and re-delegated to the 

Director, Office of Aviation Analysis.

 3 The regulations applicable to these areas are: (1) 49 CFR Part 20 -- New Restrictions on Lobbying; 

(2) 49 CFR Part 21 -- Nondiscrimination in Federally-Assisted Programs of the Department of Transportation --

Effectuation of Title VI of the Civil Rights Act of 1964; (3) 49 CFR Part 27 -- Nondiscrimination on the Basis of 

Disability in Programs and Activities Receiving or Benefiting from Federal Financial Assistance; (4) 

14 CFR Part 382 -- Nondiscrimination on the Basis of Disability in Air Travel; and (5) 49 CFR Part 29 --

Government-Wide Debarment and Suspension (Non-Procurement) and Government-Wide Requirements for 

Drug-Free Workplace (Grants).

4 The certifications are also available on the web at http://www.dot.gov/policy/aviation-policy/small-communityrural-air-service/essential-air-service. 
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ACCORDINGLY,

1. We request that carriers interested in providing Essential Air Service at Altoona and 

Johnstown, Pennsylvania, submit their proposals, with subsidy support if necessary, no later 

than March 11, 2014. The proposals should be e-mailed to: michael.f.martin@dot.gov with 

the title “Proposal to Provide EAS at Altoona and/or Johnstown, Pennsylvania”;5

2. These dockets will remain open until further Order of the Department; and

3. We will serve copies of this Order on the mayors of Altoona and Johnstown, Pennsylvania,

the airport manager of Altoona/Blair County Airport, the manager of Johnstown Cambria 

Regional Airport, and the service list for this docket.

Persons entitled to petition the Department for review of this Order under the Department’s 

Regulations, 14 CFR Part 385.31(a), must file such petitions within seven (7) 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

online at www.regulations.gov. 

 5 Questions regarding filings in response to this Order may be directed to Michael Martin at (202) 366-6494 or

michael.f.martin@dot.gov. 
Appendix A

AREA MAP

Maps generated by the Great Circle Mapper - copyright © Karl L. Swartz.
Appendix B

Page 1 of 2

Altoona, Pennsylvania

Quarter Year Deplanements Enplanements Total Traffic

Enplanements per 

Day

4 2009 1,388 1,351 2,739 17

1 2010 1,078 1,014 2,092 14

2 2010 884 939 1,823 12

3 2010 1,263 1,148 2,411 15

Annual 

Totals 4,613 4,452 9,065 14

4 2010 1,349 1,194 2,543 16

1 2011 769 745 1,514 10

2 2011 1,184 1,100 2,284 15

3 2011 1,195 1,157 2,352 15

Annual 

Totals 4,497 4,196 8,693 14

4 2011 1,130 1,102 2,232 14

1 2012 742 653 1,395 9

2 2012 860 804 1,664 11

3 2012 976 857 1,833 12

Annual 

Totals 3,708 3,416 7,124 11

4 2012 1,023 920 1,943 12

1 2013 807 768 1,575 10

2 2013 1,060 944 2,004 13

3 2013 1,260 1,048 2,308 15

Annual 

Totals 4,150 3,680 7,830 13
Appendix B

Page 2 of 2

Johnstown, Pennsylvania

Quarter Year Deplanements Enplanements Total Traffic

Enplanements per 

Day

4 2009 2,000 1,967 3,967 25

1 2010 1,240 1,282 2,522 16

2 2010 2,103 2,353 4,456 29

3 2010 2,411 2,331 4,742 30

Annual 

Totals 7,754 7,933 15,687 25

4 2010 2,117 2,129 4,246 27

1 2011 1,379 1,536 2,915 19

2 2011 2,070 2,098 4,168 27

3 2011 2,132 2,124 4,256 27

Annual 

Totals 7,698 7,887 15,585 25

4 2011 1,809 1,971 3,780 24

1 2012 1,066 1,173 2,239 15

2 2012 1,743 1,825 3,568 23

3 2012 1,911 2,047 3,958 25

Annual 

Totals 6,529 7,016 13,545 22

4 2012 1,612 1,694 3,306 21

1 2013 1,225 1,265 2,490 16

2 2013 1,609 1,591 3,200 21

3 2013 1,611 1,680 3,291 21

Annual 

Totals 6,057 6,230 12,287 20
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 

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 may not be available for performance under this Order beyond [DATE]. The Government’s 

obligation 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 beyond [DATE], until funds are made 

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

performance beyond [DATE], 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, including any amended claims, 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 31st

; August claims must be submitted by November 30th, and so on.