Order 2010-10-5

Served: October 7, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 7

th day of October, 2010

ORDER SELECTING CARRIER, ESTABLISHING SUBSIDY RATES

AND REQUESTING PROPOSALS

Summary

By this order, the Department is selecting Pacific Wings, L.L.C. d/b/a Georgia Skies (Pacific 

Wings), to continue providing subsidized essential air service (EAS) at Athens, Georgia, for the 

two-year period beginning October 1, 2010, at the annual subsidy rate of $1,051,386;

1 and 

requesting proposals from carriers interested in providing EAS at Macon, Georgia, with or 

without subsidy, for a new two-year period. (See Appendix A for a map of the service area.)

Background

Athens and Macon are guaranteed to receive at least a minimum level of air service under the 

EAS program by virtue of the fact that they appeared on a certificated carrier’s Civil Aeronautics 

Board-issued certificate on October 24, 1978, the date the Airline Deregulation Act of 1978 was 

signed into law. (See 49 U.S.C. 41731-41744 for the EAS program’s governing statutes.) By

Order 2008-5-43, May 29, 2008, the Department selected Pacific Wings to provide EAS at the 

communities for the two-year period through September 30, 2010. That order established the 

annual subsidy rate of $1,051,386 for Athens and $1,386,306 for Macon for nonstop service to 

Atlanta (12 round trips a week at Athens and 26 round trips a week at Macon), operated with 9-

seat Cessna 208B aircraft.

In anticipation of the end of the rate term, the Department issued Order 2010-5-33, May 28,

2010, requesting proposals from carriers interested in providing replacement service at the 

 

1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds.

Essential Air Service at

ATHENS, GEORGIA

MACON, GEORGIA

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

DOCKET DOT-OST-2002-11348

DOCKET DOT-OST-2007-28671
2

communities, with subsidy support if necessary, for the two-year period beginning October 1, 

2010.

Carrier Proposals

In response to our request, we received proposals from Pacific Wings (the incumbent), Alaska 

Juneau Aeronautics, Inc. d/b/a SeaPort Airlines (SeaPort), Gulfstream International Airlines 

(Gulfstream), Charter Air Transport, Inc., (Charter Air), and Sovereign Air, Inc. (Sovereign). 

Due to the large response, we have summarized the proposals in the table below:

Carrier Options Subsidy Hub Round Trips Per Week Aircraft

Pacific Wings Athens $1,051,386 ATL 12 nonstop Cessna 208B (9 seats)

Macon $1,386,306 ATL 26 nonstop Cessna 208B (9 seats)

SeaPort Athens $1,004,979 1/ BNA 12 nonstop Pilatus PC-12 (9 seats)

Athens $1,028,049 2/ BNA 12 nonstop Pilatus PC-12 (9 seats)

Gulfstream Macon $2,733,975 MCO/TPA 6 nonstop to each hub Beech 1900D (19 seats)

Charter Air Transport Macon only $1,492,700 ATL 11 nonstop* Jetstream 32 (19 seats)

Athens only $1,315,062 ATL 11 nonstop* Jetstream 32 (19 seats)

Macon/Athens $2,011,728 ATL 11 nonstop & one-stop* Jetstream 32 (19 seats)

Macon/Athens $2,500,457 ATL 11 nonstop & one-stop* Embraer EMB-120 (30 seats)

Sovereign Air 3/ Athens $670,749 ATL 21 nonstop 4/ King Air (9 seats)

Macon $571,949 ATL 14 nonstop King Air (9 seats)

1/ First year rate.

2/ Second year rate.

3/ Sovereign Air does not have the requisite authority from either

 the Federal Aviation Administration or the Department to perform its

 proposed service, although it has applied for such authority.

4/ Sovereign's schedule shows 19 round trips per week, however

 subsidy calculations appear to be based on 21 round trips per week.

* Plus one non-subsidized r/t to Hilton Head per week.

Community Comments

In response to our request for comments, we received responses from both communities. Mayor 

Robert Reichert of Macon noted that Pacific Wings’ and Gulfstream’s interline and baggage 

agreements with major carriers are a “top consideration for ensuring passengers can connect to 

their destinations at the hub airport.” Mayor Reichert believes that Gulfstream would be capable 

of providing quality service to the region and that the carrier’s Orlando service would provide 

numerous domestic and international connections for travelers. In addition, the Mayor notes that 

Pacific Wings’ proposal to continue its service to Atlanta could also be recommended, provided 

a code-share agreement with a major carrier could be attained. Finally, Mayor Reichert says that 
3

Pacific Wings’ gate access at Atlanta and its low fares demonstrate the carrier’s continuing 

efforts to improve service to the community.

Mayor Heidi Davison of Athens also submitted a letter stating that the citizens of Athens have 

expressed an interest in continuing EAS at the community, as well as improving the level of 

service provided. She notes that the Athens Airport Authority established a set of goals for 

evaluating carrier proposals, including the carrier’s proven customer service/marketing program, 

affordable fares, interline or code-share agreements, as well as other criteria. After a majority

vote, according to Mayor Davison, the Airport Authority Board recommends that the EAS 

contract be awarded to SeaPort Airlines and notes that “SeaPort Airlines has agreed to amend 

their proposed destination of Nashville International to Atlanta International.”

2

Decision

The EAS program’s governing statute (see 49 U.S.C. 41732(b)) guarantees certain service 

minimums. When selecting a carrier to provide EAS, we must also take into consideration

certain statutory factors, such as service reliability, interline and baggage arrangements with a 

larger carrier to allow for seamless connections beyond the hub, as well as community views

(49 U.S.C 41733(c)).

In narrowing the field of options, we first turned to Charter Air3 and Sovereign. Neither carrier 

has any community support or interline baggage arrangements. While Sovereign’s subsidy rates 

would offer savings over the other three carriers (Pacific Wings, SeaPort and Gulfstream), it does 

not have the requisite operating authority from either the Department or the Federal Aviation 

Administration. Thus, we will not consider either carrier’s proposal further.

The options remaining on the table are Gulfstream to serve Macon, SeaPort to serve Athens, and 

Pacific Wings with separate proposals for each community. At Macon, Gulfstream proposes to 

provide one nonstop round trip a day (six a week) to Orlando and one nonstop round trip a day

(six a week) to Tampa with 19-seat aircraft at an annual subsidy rate of $2,733,975. Gulfstream, 

currently operating as Continental Connection, would operate this service as Gulfstream, i.e., 

without a code-share. Pacific Wings would continue 26 round trips a week for $1,386,306 (no

increase in subsidy from the current two-year period). While the community supports 

Gulfstream, it also indicates that Pacific Wings has interline baggage agreements and is 

committed to the Macon market.

Athens

At Athens, Pacific Wings proposed to operate 12 nonstop round trips a week to Atlanta with 

nine-seat Cessna caravans for an annual subsidy of $1,051,386. SeaPort proposed 12 nonstop 

round trips a week to Nashville with nine-seat Pilatus PC-12 aircraft for a subsidy of $1,004,979 

the first year and $1,028,049 the second year. With the subsidy rates so close, we look to other 

statutory factors to be decisional. First, Pacific Wings has interline baggage agreements in place 

and appears in most of the major GDSs -- Expedia, Orbitz, Travelocity, etc. On the other hand, a 

web search of the major GDSs for the four communities in Arkansas where SeaPort has served 

 

2 We must note that Seaport proposed to provide service between Athens and Nashville International Airport. The 

Department was only made aware of the carrier’s agreement with the community to amend the terms of its proposal 

by way of the letter submitted by Mayor Davison.

3 See Order 2010-9-26 for a complete discussion of Charter Air Transport’s authority to provide EAS.
4

for nearly a year did not yield any results. SeaPort did state in its proposal that it would have full 

GDS visibility in August 2010, but as of late September, this still has not been accomplished. 

Regarding community support, Mayor Davison states “SeaPort has agreed to amend their 

proposed destination of Nashville International to Atlanta International.” Indeed, in its proposal 

SeaPort touts the benefits of the “tremendous appeal for quick trips to and from Nashville.” We 

did not receive anything from SeaPort about a proposed hub change until August 9, well after we 

learned of the hub change from the Mayor and, more importantly, well after SeaPort had an 

opportunity to see all the other carriers’ proposals. The EAS program operates on a “sealed bid” 

basis. That is, all the proposals are sent to the EAS staff, which holds them until the day after the 

due date at which time they are entered into the docket system, thereby making them all public at 

the same time to ensure a level playing field. In the RFP, we specifically asked carriers to work 

with the communities during the 30-day window between issuance of the order and when 

proposals were due, not afterwards, and that we would not accept late-filed proposals. Allowing 

such late filings would be procedurally unfair to the other applicants, as the late-filer would have 

had an opportunity to view the docketed proposals before filing or making alterations to its own. 

Finally, we are not in a position to judge the reasonableness of SeaPort’s subsidy request, as it is 

premised on service to the much more distant Nashville hub -- the nonstop air miles from Athens 

to Nashville is 242 miles; 67 to Atlanta.

Therefore, after taking all of the above into careful consideration, we have decided to select

Pacific Wings to continue to provide subsidized EAS at Athens, as proposed, for a new two-year 

period beginning October 1, 2010. We find that the proposed service and subsidy levels are

reasonable. Pacific Wings has been providing reliable service at both communities since 2008 

and the carrier’s interline ticketing and baggage-handling agreements with most major carriers 

will continue to ensure convenient connecting opportunities beyond the hub.

We shall make this selection contingent upon the Department’s receiving properly executed 

certifications from Pacific Wings that it is in compliance with the Department’s regulations 

regarding drug-free workplaces and nondiscrimination, as well as the regulations governing 

lobbying activities.

Macon

Gulfstream proposes to provide one nonstop round trip a day (six a week) to Orlando and one 

nonstop round trip a day (six a week) to Tampa with 19-seat aircraft at an annual subsidy rate of 

$2,733,975. Gulfstream, currently operating as Continental Connection, would operate this 

service as Gulfstream, i.e., without a code-share. Pacific Wings would continue to provide 26 

round trips a week for $1,386,306 (no increase in subsidy from the current two-year period). 

While the community supports Gulfstream, it also indicates that Pacific Wings has interline 

baggage agreements and is committed to the Macon market.

We try to accede to community views whenever possible and are even willing to pay a somewhat 

higher short-term subsidy rate if there are prospects for long-term subsidy savings. In this case, 

however, Gulfstream’s proposal requires $1.35 million more subsidy than Pacific Wings’. In 

addition, Gulfstream’s subsidy request of $2,733,975 would result in a subsidy per passenger in 

excess of $900. On the other hand, Macon has not waived its right to service with 15-seat or 

larger aircraft. Given these facts, we have decided to reject the current proposals and rebid the 

case in an effort to obtain proposals offering service that would satisfy Macon’s EAS needs at 

subsidy levels that are competitive.
5

Special discussion concerning Macon

Based available data for 2009, there were 2,987 passengers enplaned and deplaned at Macon. 

The annual subsidy amount for Macon is $1,386,306. Therefore, the subsidy per passenger at 

Macon is $464. 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.

4 Macon exceeds the $200 per passenger cap and it 

is fewer than 210 miles from a large or medium hub, i.e., it is 82 miles from Atlanta-Hartsfield 

International Airport.

Rather than terminate Macon’s service eligibility, at this stage, the Department will solicit 

proposals for EAS, but the Department will evaluate all proposals submitted before committing 

to a two-year contract or making a final determination on Macon’s continuing eligibility. During 

the 30-day window for proposals, we expect the community to work aggressively with all 

potential applicants to mitigate some of the risks that the carriers may face in an attempt to lower 

subsidy levels.

In this regard, Pacific Wings is entitled to fair compensation while we continue to process the

carrier-selection case. Its current contract expires on September 30. Effective October 1, we will 

compensate Pacific Wings at the service and subsidy levels contained in its prospective bid --

$1,386,306 for 26 nonstop round trips a week to Atlanta -- that was submitted under competitive 

conditions. We find both the service and subsidy levels to be reasonable.

Request for Proposals

We are again requesting proposals from carriers interested in providing service at Macon, with or 

without subsidy support, for a new two-year period. Carriers should file their proposals no later 

than November 1. After that date, our staff will docket proposals, thereby making them public, 

and direct each carrier to serve a copy of its proposal on the civic parties and other applicants. 

Shortly afterwards, we will provide a summary of the proposals to community officials and ask 

them to submit their final comments. We will give full consideration to all proposals filed in a 

timely manner.5

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 solicit a new round of proposals.

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. 

 

4 Congress first established the $200 ceiling under P.L. 101-164 for fiscal year 1990, and reestablished it in fiscal 

years 1994-1999. The ceiling was made permanent by P.L. 106-69, the Department of Transportation and Related 

Agencies Appropriations Act of 2000.

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

essential air service without subsidy and we determine that service can be reliably provided without such 

compensation, we do not proceed with the carrier-selection case. Instead, we simply rely on that carrier’s subsidyfree service as proposed.
6

We strongly encourage clear, well-documented proposals that will facilitate their evaluation by

the affected community and the Department.6

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

have summarized historical passengers in Appendix D. During 2009, Macon generated a total of 

2,987 O&D passengers, drastically lower than the previous year during which there were a total 

of 19,460 passengers, or an average of 31 daily enplanements.

As stated above, we will evaluate all proposals submitted before committing to a two-year 

contract or making a final determination on Macon’s continuing eligibility.

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

Specifically for Macon, we request proposals for service consisting of at least two nonstop round 

trips per day. Service should be with two-pilot, twin-engine aircraft with at least 15 passenger 

seats, unless the community agrees to smaller aircraft. In that event, we would also consider 

proposals for more service with eight- or nine-seat aircraft. If aircraft with fewer than 15 seats 

are contemplated, service patterns should consist of nonstop service between the community and 

the proposed hub airport. If a proposal offering aircraft fewer than 15 seats is submitted and the 

community supports the service, as it has previously, in effect waiving its right to 15-seat or 

larger aircraft, we would consider the waiver to apply only to the two-year carrier-selection at 

hand, i.e. we would not assume that the community waives it rights for all time. Of course, as 

always, we will formally solicit the community’s views on any service options we receive before 

making a long-term carrier selection decision. The community and air carriers are encouraged to 

work together in advance of the due date for proposals to craft a service pattern that is desirable 

to the community and meets the operational needs of the airline interested in submitting a 

proposal.

We encourage proposals that meet these requirements in an efficient manner. Carriers are also 

welcome to propose more than one option, if they choose; they need not limit themselves to those 

requirements if they envision other, potentially more attractive service possibilities -- different 

hubs, for example -- with subsidy requirements that remain competitive.

New Filing Procedures

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.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

 

6 In selecting a carrier to provide subsidized essential air service, 49 U.S.C. 41733(c)(1) directs us to consider four 

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; and (4) community views. 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 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.
7

activities, drug-free workplaces and nondiscrimination.7 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. All carriers that plan to submit 

proposals involving subsidy should submit the required certifications along with their proposals. 

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.8

Community and State Comments

Civic officials 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 November 1, the due date for carrier proposals.

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. Pacific Wings 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. The Department selects Pacific Wings, L.L.C. d/b/a GeorgiaSkies, to continue to provide EAS

at Athens, Georgia, and establishes the subsidy rate, as detailed in Appendix B, for the two-year 

period beginning October 1, 2010;

2. We set the final rate of compensation for Pacific Wings for the provision of essential air 

service at Athens, payable as follows: for each month during which EAS is provided, the amount 

of compensation shall be subject to the weekly ceiling set forth in Appendix C and shall be 

determined by multiplying the subsidy-eligible arrivals and departures completed during the 

month by $860;

9

 

7 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; 49 CFR Part 27 – Nondiscrimination on the basis of disability in programs 

and activities receiving or benefiting from Federal financial assistance; and 14 CFR Part 382 – Nondiscrimination on 

the basis of disability in air travel; and (3) 49 CFR Part 29 – Government-wide debarment and suspension (nonprocurement) and government-wide requirements for drug-free workplace (grants).

8 The certifications are also available on the web at http://ostpxweb.dot.gov/aviation/index.html.

9 See Appendix C for the calculation of this rate, which assumes the use of the aircraft designated. If the carrier 

reports a significant number of aircraft substitutions, a revision of this rate may be required.
8

3. We set the rate of compensation for Pacific Wings for the provision of essential air service at 

Macon, payable as follows: for each month during which EAS is provided, the amount of 

compensation shall be subject to the weekly ceiling set forth in Appendix C and shall be 

determined by multiplying the subsidy-eligible arrivals and departures completed during the month 

by $523;

10

4. The Department finds that Pacific Wings continues to be fit, willing and able to operate as a

commuter air carrier and capable of providing reliable EAS at Athens, Georgia;

5. We request that carriers interested in providing essential air service at Macon, Georgia, submit 

their proposals, with or without subsidy requests, no later than November 1, 2010. The proposals 

should be emailed to: EAS@dot.gov with the title “Proposal to Provide Essential Air Service at 

Macon, Georgia, Docket DOT-OST-2007-28671”;

11

6. We direct Pacific Wings 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;

7. Dockets DOT-OST-2002-11348 and DOT-OST-2007-28671 will remain open until further 

order of the Department; and

8. The Department will serve a copy of this order on the mayors and airport managers of Athens 

and Macon, Pacific Wings, L.L.C. d/b/a GeorgiaSkies, Alaska Juneau Aeronautics, Inc. d/b/a 

SeaPort Airlines, Gulfstream International Airlines, Inc., Charter Air Transport, Inc., Sovereign 

Air, Inc., and the parties listed in Appendix E.

By:

SUSAN L. KURLAND

Assistant Secretary for Aviation

 and International Affairs

(SEAL)

An electronic version of this document is available online at

www.regulations.gov

 

10 See Appendix C for the calculation of this rate, which assumes the use of the aircraft designated. If the carrier 

reports a significant number of aircraft substitutions, a revision of this rate may be required.

11 Questions regarding filings in response to this order should be directed to Renée Williams at 202-366-1058, or 

via email at renee.williams@dot.gov.
Appendix A

Area Map
Appendix B

PACIFIC WINGS, LLC. d/b/a GEORGIASKIES

ANNUAL COMPENSATION REQUIREMENT FOR ESSENTIAL AIR SERVICE AT

ATHENS, GEORGIA
Appendix C

Page 1 of 3

PACIFIC WINGS, LLC. d/b/a GEORGIASKIES

ANNUAL COMPENSATION REQUIREMENT FOR ESSENTIAL AIR SERVICE AT

ATHENS, GEORGIA

Effective period: October 1, 2010, through September 30, 2012

Service: 12 nonstop round trips per week to Atlanta

Aircraft type: Cessna 208B aircraft (9 seats)

Timing of flights: No upline or intermediate service is permitted without prior 

Department approval. Flights must be well-timed and wellspaced in order to ensure full compensation.

Annual compensation: $1,051,386

Subsidy Rate Per

Arrival/Departure: $8601

Weekly Compensation 

Ceiling: 2$20,6403

___________________________

1

 Annual compensation of $1,051,386 divided by 1,223 annual arrivals and departures calculated as 

follows: 24 flights per week x 52 weeks x 98% completion = 1,223.

2

 This rate assumes an annual completion factor of 98 percent. A compensation ceiling is to be applied 

per calendar week such that service above that ceiling in one week cannot make up for service shortfalls

in another week.

3

 Subsidy rate per arrival/departure of $860 multiplied by 24 eligible arrivals and departures.
Appendix C

Page 2 of 3

PACIFIC WINGS, LLC. d/b/a GEORGIASKIES

ANNUAL COMPENSATION REQUIREMENT FOR ESSENTIAL AIR SERVICE AT

MACON, GEORGIA

Effective period: October 1, 2010, until further Department action.

Service: 26 nonstop round trips per week to Atlanta

Aircraft type: Cessna 208B aircraft (9 seats)

Timing of flights: No upline or intermediate service is permitted without prior 

Department approval. Flights must be well-timed and wellspaced in order to ensure full compensation.

Annual compensation: $1,386,306

Subsidy Rate Per

Arrival/Departure: $5231

Weekly Compensation 

Ceiling: 2$27,1963

___________________________

1

 Annual compensation of $1,386,306 divided by 2,650 annual arrivals and departures calculated as 

follows: 52 flights per week x 52 weeks x 98% completion = 2,650.

2 This rate assumes an annual completion factor of 98 percent. A compensation ceiling is to be applied 

per calendar week such that service above that ceiling in one week cannot make up for service shortfalls

in another week.

3

 Subsidy rate per arrival/departure of $523 multiplied by 52 eligible arrivals and departures.
Appendix C

Page 3 of 3

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 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.
Appendix D

Historical O&D Traffic and Average Daily Enplanements1

At Macon, Georgia

Average Daily

O&D Traffic Enplanements2

1Q09 721 4.7

2Q09 821 5.3

3Q09 655 4.1

4Q09 790 5.0

2009 Totals: 2,987 4.8

1Q08 4,857 31.1

2Q08 6,554 42.0

3Q08 5,852 37.0

4Q08 2,197 13.9

2008 Totals: 19,460 31.0

________________________________

1 Source: Bureau of Transportation Statistics; TranStats Form 41, Schedule T-100.

2 Daily averages are based on one-half of the O&D passengers, divided by 313 service days (314 during 

leap years).
Appendix E

Scheduled Air Carriers, Contiguous US and Puerto Rico

Air Sunshine, Inc. Jet Air, Daniel Wolford

Air Sunshine, Mirmohammad Adili Kenmore Air, Tim Brooks 

Air West, Inc., John Raatz McCall Aviation and Salmon Air, Dan Scott

Air Wisconsin, Annette Daly McCall Aviation, Michelle

Airline Associates, Bill Mishk Mesa Air, Jonathan Ornstein

Alaska Airlines, Jeff Cole Mesa Air, Michael Lotz 

Alaska Airlines, Sandy Sinick Mesa Air, Mike Holcomb

Allegiant Air, Robert Ashscroft Mesaba, John Spanjers 

American Airlines, Carl Nelson Mesaba, Max Shemesh

American Eagle, Jeffrey Hartz Midstar Airlines, Jeffrey Fonner

Atlantic Southeast, Jon Lindlief Midwest Airlines, Anthony Intravia 

Atlantic Southeast, Roger Weston Midwest Airlines, Greg Aretakis

Bemidji Aviation, Cori Rude Midwest Airlines, J.C. Augustson

Bemidji Aviation, Arlen Rinkenberger MN Aviation, Jose Maldonado 

Cape Air, Andrew Bonney Multi Aero, Darnea

Cape Air, Dan Wolf Multi Aero, Shane Storz

Cape Air, J.Flaherty Northwest, Tim McDonald 

Classic Aviation, Tony Henderson NYDC, Henok Araya

Colgan Air, Mike Colgan OST, Brian Swanson

CommutAir, Andy Price OST, Dennis DeVany

CommutAir, Joel Raymond OST, Kevin Adams

Consultant, Robert Silverberg OST, Kevin Schlemmer

Continental, Bruce Keiner OST, Michael Martin 

Continental, Dan Weiss OST, Renee Williams

Continental, Lorry Halloway Pacific Wings, Frank Ford

Delta, Amy Martin Pacific Wings, Greg Kahlstorf

Delta, Dan Shuman PenAir, Danny Seybert

Delta, Jeff Morgan PenAir, Scott Bloomquist

Delta, Joe Esposito Pinnacle Airlines, Joe Williams 

Delta, Karen Zachary Pinnacle Airlines, Phil Reed

Delta, Sascha Vanderbellen Public Charters, Jim Gallagher

Dorato Jets Scenic, Mary Schneider

Dorato Jets, Mark McKenna Scenic, Mitzi Daines

Era Aviation, Mike Lenorman Seaborne Airlines, Wayne D'Amico

Executive Airlines, Kate Soled SeaPort Airlines, Jim Day 

Frontier Flying, Bob Hajducovich SeaPort Airlines, Rob McKinney

Gem Air, Dan Schroeder Shuttle America, Jerry Balsano 

Gem Air, JoAnn Wolters SkyWest, Eric Christensen

Great Lakes, Chuck Howell SkyWest, Michael Thompson

Great Lakes, Doug Voss Sovereign Air, Bob Karns

Great Lakes, Greg Stephens Sovereign Air, Lois R. Barton

Gulfstream, Dave Hackett Tradewind, Eric Zipkin 

Gulfstream, Mickey Bowman TransStates, Fred Oxley

Gulfstream, T. Cooper Transtates, Gerry Wigmore 

Homeland Security, Bill Ragan United, Alicia Gabriel

Homeland Security, David Bernier United, James Starnes

Homeland Security, Randy Webb US Airways, Benjamin Slocum

Horizon Airlines, Dan Russo US Airways, Howard Kass

Horizon Airlines, Jennifer Thompson US Airways, Jason Reisinger 

Horizon, Jeff Cole Warbelows Air Ventures, Art Warbelow

ICEPR, Luis Irizarry Wings Air (Air Greco), Aaron Goerlich

Island Air Charters, Linda House