Order 2014-7-11 Served: July 18, 2014



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 18 t h of July, 2014

Essential Air Service at

ALTOONA, PENNSYLVANIA BECKLEY, WEST VIRGINIA BRADFORD, PENNSYLVANIA CLARKSBURG/FAIRMONT,WEST VIRGINIA DUBOIS, PENNSYLVANIA FRANKLIN/OIL CITY, PENNSYLVANIA GREENBRIER/WHITE SULPHUR SPRINGS,

WEST VIRGINIA JAMESTOWN, NEW YORK JOHNSTOWN, PENNSYLVANIA MORGANTOWN, WEST VIRGINIA PARKERSBURG, WEST VIRGINIA/ MARIETTA, OHIO STAUNTON, VIRGINIA

Under 49 U.S.C. 41731 et seq

. DOT-OST-2002-11446

DOT-OST-1997-2761

DOT-OST-2003-14528

DOT-OST-2005-20736

DOT-OST-2004-17617

DOT-OST-1997-2523

DOT-OST-2003-15553

DOT-OST-2003-14950

DOT-OST-2002-11451

DOT-OST-2005-20735

DOT-OST-2005-20734

DOT-OST-2002-11378

ORDER SELECTING AIR CARRIERS , RESOLICITING PROPOSALS ON AN EXPEDITED BASIS, AND DEFERRING ACTION

Summary By this Order, the Department is: 1) selecti ng Sun Air Express, LLC d/b/a Sun Air International (“Sun Air”) to provide Essential Air Service (E AS) at Altoona, Pennsylvania, and Jamestown, New York, from October 1, 2014, through Septembe r 30, 2016; 2) re-selecting Silver Airways (“Silver”) to provide EAS at Clarksburg/Fai rmont (“Clarksburg”), Greenbrier/White Sulphur Springs (“Greenbrier”), and Morgantown, We st Virginia, Johnstown, Pennsylvania, and Staunton, Virginia, from August 1, 2014, through September 30, 2016, and re-selecting Silver at DuBois, Pennsylvania, and Parkersburg, West Vi rginia/Marietta, Ohio (“Parkersburg”), from October 1, 2014, through September 30, 2016; 3) re-soliciting proposal s from air carriers interested in providing EAS at Beckley, West Virg inia, with or without subsidy (proposals are due no later than July 31, 2014); and 4) deferr ing action on Bradford and Franklin/Oil City, Pennsylvania (“Franklin”), until fu rther Order from the Department.- 2 -

Background

By Order 2012-4-30, issued on April 26, 2012, the Depart ment selected Silver to provide EAS at Altoona and Johnstown to Washington Dulles International Airport (IAD) using 34-passenger Saab 340 aircraft, for the two-year period from August 1, 2012, through July 31, 2014. The combined annual subsidy for both communitie s is $3,997,187 and both communities receive 18 weekly nonstop and one-stop round trips with 19-passenger Beech 1900D aircraft, over an Altoona-Johnstown-IAD or a Johnstown-Altoona-IAD routing.

By Order 2012-9-23, issued on September 27, 2012, th e Department selected Silver to provide subsidized EAS at Bradford, DuBois, Frankli n, Jamestown, and Parkersburg, for a combined annual subsidy of $10,348,117 ($1,940,272 for Bradford, $2,587,029 for DuBois, $1,293,515 for Franklin, $1,940,272 for Jamestown, and $2,587,029 for Parkersburg), for the two-year period from October 1, 2012, through September 30, 2014. Silver operates its service with 19- passenger Beech 1900D aircraft to Cleveland Hopk ins International Airport (CLE) under a codeshare agreement with United Airlines.

By a series of Orders, the Department selected Silver to provide EAS at Beckley, Clarksburg, Greenbrier, Morgantown, and Staunton, all th rough July 31, 2014, at annual subsidy rates totaling $12,848,083. 1

On February 14, 2014, Silver filed a 90-day notice of its intent to terminate service at Bradford, DuBois, Franklin, Jamestown, and Parkersburg, where the contract was set to expire on September 30, 2014, because of United Airlines’ announcement that it was greatly downsizing its hub at CLE, and because Silver planned to re tire its fleet of Beech 1900-D aircraft, which it uses to serve these five communities. By Order 2014-3-12, issued on March 19, 2014, the Department requested proposals, with a due date of April 17, 2014.

In anticipation of the end of Altoona and J ohnstown’s contract on July 31, 2014, by Order 2014- 2-6, issued on February 6, 2014, the Department requested proposals for EAS at Altoona and Johnstown, with proposals due no later than March 11, 2014. On March 6, 2014, Silver Airways requested an extension to the deadline until March 21, 2014. On March 6, 2014, the Department granted the extension request, thereby making proposal s to serve Altoona and Johnstown due on March 21, 2014.

On March 19, 2014, Silver Airways requested an additional extension for Altoona and Johnstown, as well as for Greenbrier/White Sul phur Springs, Beckley, Clarksburg/Fairmont, and Morgantown, West Virginia, and Staunton, Virginia, until April 17, 2014. The Department granted the extension request a nd set the due date for proposals at April 17, 2014, to synchronize

the dates for all communities.

1 Order 2012-4-32 for Beckley, Clarksburg and Morgantown; Order 2012-5-17 for Greenbrier; and Order 2012-6-10

for Staunton.- 3 -

In response to our Request for Proposals, Silver , Boutique Air, City Link Air, and Sun Air Express, LLC d/b/a Sun Air International (“Sun Air”) submitted proposals for consideration at all or some of the 12 communities at issue here. However, on May 14, 2014, the Department received requests from two air carriers asking that they be allowed to modify their proposals at

some or all of the above-mentioned communities. We reviewed the requests and found it to be in the public interest to grant their requests. Ther efore, the air carriers th at submitted proposals in response to the most recent Request for Proposal s at the above-mentioned communities had until May 27, 2014 to resubmit a revised proposal, if they chose to do so.

Summary of Proposals

Boutique Air Boutique proposed 18 weekly nonstop round trips to PIT at Jamestown, Bradford and Franklin at annual subsidies of $1,571,912 (Jamestown), $1,590,467 (Bradford), and $1,287,147 (Franklin). At Dubois, the carrier proposed 24 weekly nonstop round trips to PIT at an annual subsidy of $1,616,101, or a dual-hub option of 12 weekly nonstop round trips to PIT and 12 to IAD at an annual subsidy of $2,535,764. Its proposal at Pa rkersburg consists of 36 weekly nonstop round trips to PIT at an annual subsidy of $2,335,785, or a dual-hub option of 24 weekly nonstop round trips to PIT and 12 weekly nonstop round trips to IAD at an annual subsidy of $3,403,724. At Johnstown, Boutique proposed 36 weekly nonstop round trips to PIT at an annual subsidy of $1,988,795, or a dual-hub option of 24 weekly nonst op round trips to PIT, and 12 weekly nonstop round trips to IAD at an annual s ubsidy of $2,715,714. For Altoona, the carrier proposed 24 weekly nonstop round trips to PI T at an annual subsidy of $1,640,874 or its dualhub option of 12 weekly nonstop round trips to PIT and IAD at an annual subsidy of $2,208,149. At Morgantown, Boutique proposed 42 weekly nonst op round trips to PIT at an annual subsidy of $1,570,618, or a dual-hub option of 30 weekly nonstop round trips to PIT and 12 weekly nonstop round trips to IAD, at an annual s ubsidy of $2,392,136. At Clarksburg, it proposed 30 weekly nonstop round trips to PIT at an a nnual subsidy of $1,550,046, or the dual-hub option of 18 weekly nonstop round trips to PIT and 12 w eekly nonstop round trips to IAD at an annual subsidy of $2,318,773. Staunton’s proposal consists of 42 weekly nonstop round trips to PIT at an annual subsidy of $3,344,313, or the dual-hub opti on of 30 weekly nonstop round trips to PIT and 12 weekly nonstop round trips to IAD at an annual subsidy of $3,461,055. At Greenbrier/White-Sulphur Springs (Lewisburg) , Boutique proposed 30 weekly nonstop round trips to PIT at an annual subsidy of $2,538,906, or a dual-hub option of 18 weekly nonstop round trips to PIT and 12 weekly nonstop round trip s to IAD at an annua l subsidy of $3,023,449. Finally, at Beckley, the carrier proposed 18 w eekly nonstop round trips to PIT at an annual subsidy of $1,780,405, or a dual-hub option of 6 weekly nonstop round trips to PIT and 12 weekly nonstop round trips to IAD at an annual subsidy of $2,428,138.

City Link Air City Link proposed 18 weekly round trips to PI T at Altoona at an annual subsidy of $2,220,219. At Dubois and Franklin, the carrier proposed 24 week ly round trips to PIT, at a combined annual subsidy of $3,213,334. At Johnstown, City Link proposed 18 weekly round trips to PIT, at an annual subsidy of $2,129,841. City Link proposed 18 weekly round trips to PIT, at Beckley and Jamestown, at a combined annual subsidy of $4,441,314. At Clarksburg, its proposal consisted of 18 weekly round trips to PIT, at an annual subsidy of $2,251,195. At Greenbrier and- 4 -

Bradford, City Link proposed 18 weekly round trips each to PIT, at a combined annual subsidy of $4,691,407. The carrier proposed 24 weekly r ound trips to PIT at both Morgantown and Parkersburg , at an annual subsidy of $2,195,608 for Morgantown and $2,655,598 for Parkersburg.

Silver Airways Silver proposed to provide Clarksburg with 18 round trips per week, consisting of 7 nonstop round trips to IAD, and 11 one-stop round trips to IAD with an intermediate stop at Morgantown or Parkersburg, at a required annual subsidy of $2,310,252. At DuBois, Silver offered 18 round trips per week, consisting of 5 nonstop flights to IAD and 13 one-s top round trips per week with an intermediate stop at Johnstown, at a re quired annual subsidy of $2,285,539. At Johnstown, the air carrier proposed 18 round trips per week to IAD, consisting of 13 nonstop round trips and 5 one-stop round trips, with an intermediate st op at DuBois, at an annual subsidy of $2,438,254. At Greenbrier, Silver offered 7 weekly nonstop round trips and 7 weekly one-stop round trips to IAD in the peak season from May 1 through November 30, and 6 weekly nonstop and 6 weekly one-stop round trips to IAD in the off peak s eason from December 1 through April 30, at an annual subsidy of$3,582,194. At Morgantown, Silv er proposed to provide 18 weekly nonstop and one-stop round trips to IAD, consisting of 12 nonstop round trips, and 6 one-stop round trips per week, with an intermediate stop at Clarks burg or Parkersburg, at an annual subsidy of $2,342,074. At Parkersburg, Silver offered to provide 18 round trips per week to IAD, consisting of 12 nonstop round trips per week, an d 6 one-stop round trips per week, with an intermediate stop at Clarksburg or Morgan town, at an annual subsidy of $3,505,876. At Staunton, Silver proposed 18 round trips per week to IAD, consisting of 12 nonstop round trips, and 6 one-stop round trips, with an intermediate stop to/from Greenbrier, at a required subsidy of $1,980,922. Silver required its selecti on at all seven communities in order for the air carrier to continue providing EAS at the above communities.

Sun Air Sun Air proposed to provide Bradford with 24 weekly nonstop round trips to Pittsburgh International Airport (PIT) at an annual subsidy request of $2,045,826. At DuBois, Sun Air proposed 26 weekly nonstop round trips to PIT, at an annual subsidy of $2,270,746. At Franklin, the air carrier offered 19 weekly nonstop round tr ips to PIT, at an annual subsidy of $1,442,788. At Jamestown, Sun Air proposed to provide 24 weekly nonstop round trips to PIT, at an annual subsidy of $2,045,481. At Altoona, Sun Air offered 26 weekly nonstop round tr ips to PIT, at an annual subsidy of $2,346,168. At Johnstown, the air carrier proposed to provide 31 weekly nonstop round trips to PIT, at an annual subsidy of $2,600,829. At Parkersburg, Sun Air proposed 31 weekly nonstop round trips per week, at an annual subsidy of $2,495,454. At Clarksburg, the carrier proposed 26 weekly nonstop round trips to PIT, at an annual subsidy of $2,208,563. At Morgantown, Sun Air proposed 38 w eekly nonstop round trips to PIT, at an annual subsidy of $2,646,791.

Community Comments On May 28, 2014, the Department re-solicited co mments from the communities regarding this carrier-selection case, and they are summarized below.- 5 -

Altoona We received letters from the Blair County Airp ort Authority (BCAA) and the County of Blair (Altoona, Pennsylvania), both e xpressing support for Sun Air’s proposal. The Blair County Airport Authority noted in its comments, “We belie ve that if we can establish safe, reliable,

convenient and economical air servic e for our community we can, with a strategic effort, tap into the travel demand of our regional area and channe l it through our airport to build enplanement

volume and create a self-s ustaining environment.”

Beckley By letter dated June 18, 2014, Mr. Tom Cochran, Ai rport Manager of Raleigh County Memorial Airport, explained that Boutique Air would operate its service w ith single-engine aircraft, and the community is not willing to accept single-engi ne service at this time. Additionally, since City Link is not ready to commence service within the near future, the community has encouraged us to re-solicit proposals.

Bradford, Franklin and Jamestown Airport Director Tom Frungillo of The Bradfo rd, Pennsylvania, Regional Airport Authority, Airport Manager Otho Bell of the Venango Regi onal Airport (Franklin, Pennsylvania), and Vincent Horrigan, Chautauqua County Executive (Jamestown, New York), support Sun Air. A joint letter received from the Bradford Regional Airport, Chautauqua County Airport (Jamestown), and Venango County Airport (Frank lin), unanimously supports Sun Air. Among the reasons the communities recommended Sun Air were the current carrier’s (Silver) unreliable service and its many years of decreasing passenge rs. The Pennsylvania Air Service committee conducted a multi-year study that showed that low- fare, high frequency, reliable air service to Pittsburgh, Pennsylvania, a medium-hub airport, on smaller aircraft, would increase passenger levels. The communities stated that they are not willing to waive their right to twin-engine

aircraft.

Clarksburg By letter dated June 19, 2014, Mr. Ron Watson, Pr esident of the Benedum Airport Authority, provided comments on behalf of the Clarksburg community. Mr. Watson expressed appreciation for the interest shown by Boutique Air, C ity Link, and Sun Air; however the community supports the re-selection of Silver. That letter explained that Boutique Air’s proposal consists of single engine service only, and Clarksburg is decl ining to accept single engine service at this time. Additionally, the community has declined to endorse City Link Air’s proposal due to the company’s lack of operating certificates. Clarksbu rg also declined to endorse Sun Air’s proposal

due to the air carrier’s “operational struggles during 2013,” its limitations on baggage as a result of the aircraft used to serve the market, and th e air carrier’s miscalcula tion of passenger forecasts

at other EAS markets. Mr. Watson notes that the community has been “disappointed” with Silver’s reliability in recent months and remains concerned that Silver’s code-share partner, United Airlines, is not offering competitive ai r fares on many segments; however, Silver’s proposal presents the best options for Clarksburg.

DuBois Loren Bishop, Chairman of the Clearfield-Je fferson Counties Regional Airport Authority, along with multiple elected civic officials, support Silv er Airways to provide service from DuBois to- 6 -

Washington Dulles International Ai rport, a large hub. The commun ity’s opinion is that larger aircraft, proposed ticket prices , interline agreements, an improve d larger hub with significantly increased destinations and connections, and im proved reliability by Silver, would be embraced by travelers.

Greenbrier By letter dated June 17, 2014, Mr. Jerry O’Sull ivan, Airport Manager of Greenbrier Valley Airport, provided support for Silver’s proposal. He cites “greater seat numbers and excellent mid-day timing of the two daily flights to Dull es,” as reasons why the community supports the

re-selection of Silver.

Johnstown The Johnstown-Cambria Airport Authority submitte d comments on behalf of the community and expressed its support for Silver’s re-selection for another term. The airport explained that the proposals were evaluated and scored based on four criteria: capability to perform the service, existing code-share and interline agreements, type of aircraft to be use d, and scheduling. Silver scored the highest of the four ai r carriers, and based on that, the ai rport believes that Silver is the logical choice.

Morgantown By letter dated June 19, 2014, Ms. Ja ckie Marhefka, Director of Mo rgantown Municipal Airport, provided support for the re-selection of Silver un der the condition that the air carrier provides “superior reliability and performance” for the dura tion of the upcoming contract. In that letter, Ms. Marhefka explained that Si lver has provided Morgantown w ith poor air service, consisting of many flight cancellati ons and delays, which has resulted in a loss of community support and trust in Silver’s reliability.

Parkersburg Mr. David Scott, President of the Mid-Ohio Vall ey Regional Airport Authority, supports Silver Airways at Parkersburg, West Virginia/Marietta, Oh io. He stated that Silver’s bid of 18 weekly flights to Washington Dulles International Airport, best meets the needs of the community. The 34-seat Saab 340 aircraft will enhance pa ssenger convenience and growth potential. Furthermore, Silver’s interline agreements, c odeshare arrangement with United Airlines, and service to Washington Dulles, provides the comm unity with access to over 80 domestic and 40

international destinations.

Staunton By letter dated June 23, 2014, Mr. Gerald Garber , Chairman of the Shenandoah Valley Regional Airport Commission, expressed support for Silver’s proposal. In that letter, Mr. Garber explained that Shenandoah Valley is one of the fastest growing re gions in Virginia, and therefore the community has a need to access to the global air transportation system, which is provided by Silver through its code-share arrangement with United Airlines at its Washington Dulles hub. Additionally, Mr. Garber feels that Silver’s S aab 340B aircraft provides modern amenities and has a desirable seat capacity th at aligns well with the community’s increasing demand for air transportation.- 7 -

Decision First, because City Link Air doe s not currently hold the requis ite economic authority from the Department to operate the scheduled air servi ce it proposed and it did not receive any community support, we will not consider any of its proposals further.

With regards to Boutique Air, none of the co mmunities where it proposed service waived their right to twin-engine aircraft, so we turn to the two remaining carriers that proposed service,

Silver and Sun Air. 2

Silver proposed an all-or-nothing package of seven communities, all seven where it is the incumbent carrier, and all seve n recommended the selection of Silver, although some with reservations, as described in the community co mments section. We find the proposed subsidy reasonable for the service to be provided. Therefore, we will re-select Silver to serve Clarksburg, DuBois, Greenbrier, Johnstown, Morgan town, Parkersburg, and Staunton. All seven communities will be served by 34-se at Saab 340 aircraft with se rvice to Washington Dulles. Service to DuBois and Parkersburg will have ne w service to Washington Dulles, when Silver discontinues serving those communities from its Cleveland hub. Even though we are selecting Silver to serve these seven communities, we note that as stated above in formal comments and in

informal conversations with ai rport and civic officials, many of the communities have been unhappy with Silver’s service in terms of cancellations and de lays, poor reliability, and poor responsiveness on the part of Silver to community concerns. We expect Silver to improve its service levels offered to the communities it serves, including improving its cancellation/delays, and responsiveness to community inquiries.

This leaves Sun Air as the only carrier with a pr oposal that offers twin-engine aircraft and is supported by Altoona and Jamestown. We find S un Air’s proposal reasonable for the service to be provided. The Department has increasingly hear d that these communities wish to return their service to Pittsburgh, and Sun Air, along with a coalition of stakeholders, including Pittsburgh International Airport, promise to make this service attractive to passengers, with interline ticketing and baggage transfer, a nd offer a greater number of fr equencies than the previous carrier, albeit using ai rcraft seating fewer passengers. Jamestown met th e 10-enplanement requirement imposed by Congress, at an averag e of 10.1 passengers per day. And, as described in the RFP for Altoona, the current subsidy pe r passenger exceeds the statutory cap of $200 per person. The Department recently had a proposed notice of enforcement policy out for comment and that proposed policy would begin measuring subsidy per passenger beginning October 1, 2014, and ending September 30, 2015, a nd continuing each fiscal year thereafter. 3 The communities are hopeful that Sun Air will be able to get both Altoona and Jamestown below the $200 subsidy per passenger cap, and keep both communities above the 10-enplanement

threshold.

2 49 U.S.C. § 41732(2)(5) guarantees aircraft with at least 2 engines and using 2 pilots, unless scheduled air transportation has not been provided to th e place in aircraft with at least 2 engi nes and using 2 pilots for at least 60 consecutive operating days at any time since October 31, 1978.

3 Comments were due June 30, 2014.- 8 -

Beckley Request for Proposals 4 As discussed above, we are requesting proposals from carriers interested in providing EAS at Beckley, West Virginia, with or without subsidy. 5 The community did not waive its right to twin-engine, two-p ilot aircraft, which Boutique did not propose, and City Link Air does not currently hold the requis ite authority to operate scheduled service. Carr iers should file their proposals by July 31, 2014. Staff will then docke t the proposals, thereby making them public. Shortly afterwards, we will provi de copies of all timely file d proposals to the communities and request community comments by a specified date . We will give full consideration to all proposals filed in a timely manner. Interested carriers should prepare th eir proposals with every expectation that their in itial proposals will also be their final and only proposals. We retain the discretion to negotiate pr oposals with carriers when we deem it desirable. We also retain the discretion to reject proposals and, if n ecessary, solicit a new round of proposals.

We are here providing inte rested carriers with some basic information to serve as guidance when they prepare their proposals, but we will not pres cribe a precise format for their proposals. We expect proposals to adequately describe the service being pr oposed 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 recomm end that they include information concerning proposed schedules and projected block hours. In addition, applicants are urged to provide financial data supporting their subsidy reque sts, including information on their projected expenses and revenues. We strongly encour age clear, well-documented proposals that will facilitate their evaluation by the community and the Department. 6

As always, we will formally solicit the community’s views on any service options we receive before making a long-term, carrier-selection de cision. The community and air carriers are encouraged to work together, in advance of the due date for pr oposals, to craft service patterns

that are both desirable to the communities and meet the operational need s of the airlines, as carriers cannot amend their proposals after the due date.

We encourage proposals that meet the community’s requirements in an efficient manner. With specific respect to Beckley, th e Department expects proposals consisting of three nonstop round trips each day (a total of 18 pe r week) to a large or medium hub airport with numerous

4 Carriers should not expect the Department to accept late fillings. In case s 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.

5 Applicants should be aware of the provisions of 49 U.S.C. § 41731(a)(1)(B), the 10-enplanement statute discussed above, when preparing their proposals. Sta ff will be available to answer any questions.

6 In selecting a carrier to provide su bsidized EAS for an eligible place not in Alaska, 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 arrang ements with a larger carri er at the hub; (4 ) community views; and (5) whether the carrier has included a plan in its proposal to market the service. 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 consider ed 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 B of this Order contains those general provisions.- 9 -

connections to the national air transportation syst em using 19-seat aircraft. For service using larger aircraft, we are requesting two nonstop or one-stop round trips each weekday and weekend (a total of 12 per week). If smaller aircraft are contemplated (e.g. 9-seat aircraft), additional frequencies will be considered, although we woul d expect the service to be nonstop to the hub airport. We encourage proposals that meet thos e 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 requirements specified above if they envision other, potentially more attractive service possibilities – different hubs, for exam ple – with subsidy requirements that remain competitive.

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 www.regulations.gov , each page should be formatted to be viewed online.

Special discussion about Brad ford and Franklin/Oil City

The FAA Modernization and Reform Act of 2012 amended 49 U.S.C. § 41731(a)(1)(B) to change the definition of “eligible place” for the purpose of receiving EAS. The amendment states that to be eligible, a co mmunity must maintain an average of 10 enplanements or more per service day, as determined by the Secretary, durin g the most recent fiscal year beginning after September 30, 2012. The legislation exempts loca tions in Alaska and Hawaii and communities that are more than 175 driving miles from the nearest large or medium hub airport

. 7 The Secretary also has the authority to waive the 10 -enplanement standard, on an annual basis, if the community can demonstrate that the reason the location averages fewer than 10 enplanements per day is due to a temporary decline in enplanements. 8

Order 2014-4-26, issued April 24, 2014 tentatively, found that both Bradford and Franklin were within 175 miles of a large or medium hub (PIT) and both averaged fewer than 10 enplanements per day in fiscal year 2013 and, thus, tentativel y terminated both communities’ EAS eligibility.

That tentative decision was made fina l by Order 2014-6-6, issued June 24, 2014.

However, as we mentioned above, the statute allo ws communities to apply for a waiver from the 10-enplanement statute. We al so announced that we would not terminate EAS subsidy during the processing of any waiver petitions, which are due to the Department by July 24. Thus, Bradford and Franklin’s long-term status in the EAS program is not clear at this time. Therefore,

we will not make a carrier select ion for those two communities; rather, we will simply maintain the status quo by continuing to subsidize Silver Airways under th e existing service and subsidy

terms. 9

Legislative Changes That May A ffect Future EAS Eligibility As mentioned above, Public Law No 112-95 ame nded 49 U.S.C. § 41731(a)(1)(B) to change the definition of “eligible place” for the purpose of recei ving EAS. The amendment states that to be eligible, a community must maintain an average of 10 enplanements or more per service day, as

7 49 U.S.C. § 41731(c) & (d).

8 49 U.S.C. § 41731(e).

9 See Order 2012-9-23, issued September 27, 2012.- 10 -

determined by the Secretary, during the most rece nt fiscal year beginning after September 30,

2012. 10 The legislation exempts locations in Alaska and Hawaii and communities that are more than 175 driving miles from the nearest large or medium hub airport. Additionally, the Department of Transportation and Related Agen cies Appropriations Act, 2000, prohibits the Department from subsidizing EAS to commun ities located within the 48 contiguous States receiving per passenger subsidy amounts exce eding $200, unless the communities are located

more than 210 miles from the nearest large or medium hub airport. As Altoona, Clarksburg, DuBois, Jamestown, Johnstown, Morgantown, Park ersburg, and Staunton are within 175 miles of a large or medium hub airpor t, and thus also within 210 miles of a large or medium hub, the communities must meet the 10-enplanement-a-da y threshold and not exceed the $200 subsidy per passenger cap for EAS to continue, barring a waiver from the Secretary. 11

For the 12-month period of October 1, 2012, through September 30, 2013, Altoona generated 7,830 total origin and destination passengers, or an average of 12.5 enplanements per day; Clarksburg generated 11,784 total origin and destination passengers, or an average of 18.8 enplanements per day; DuBois generated 9,793 to tal origin and destinat ion passengers, or an average of 15.6 enplanements per day; Jamest own generated 6,321 total or igin and destination passengers, or an average of 10.1 enplanements pe r day; Johnstown genera ted 12,287 total origin and destination passengers, or an average of 19.6 enplanements per day; Morgantown generated 20,381 total origin and destination passengers, or an average of 32.6 enplanements per day; Parkersburg generated 16,357 orig in and destination passenger s, or an average of 26.1 enplanements per day; and Staunton generated 28, 203 total origin and destination passengers, or an average of 45.1 enplanements per day. 12

Air carriers and the communities should also be aware that the Department will continue to monitor community eligibility to receive EAS in light of thes e new requirements throughout the life of any executed contract. The Department may cancel a contract for any community receiving EAS if enplanements remain be low 10 per day during FY2013. Communities that believe their enplanements are below 10 per da y due to a temporary decline should provide a detailed explanation of the temporary declin e to the Department w ith relevant supporting

documents.

Public Law 112-95, signed into law on Februa ry 14, 2012, further amended the definition of “eligible place” for the purpose of receiving EAS. 13 The amendment, among other things, states that to be eligible, a community must have had an average subsidy per passenger of less than $1,000 during the most recent fiscal year, as dete rmined by the Secretary of Transportation.

10 The Secretary also has authority to waive the 10 passenge r requirement, on an annual basis, if the community can demonstrate that the reason the location averages fewer than 10 passengers per day is due to a temporary decline in enplanements. See 49 U.S.C. §41731(e).

11 On May 1, 2014, a Notice of Proposed Enforcement Policy on the $200 per passenger subsidy cap was published in the Federal Register (Volume 79, Issue 84). It outlined the Department’s proposed policy on this issue, which would use traffic data from October 1, 2014, through September 30, 2015, to measure compliance. The Department has solicited public comments on the policy and the comment period closed June 30, 2014. Refer to www.regulations.gov and search “DOT-OST-2014-0061” for more information.

12 Enplanements represent one-half of total origin-and-destination traffic.

13 See 49 U.S.C. § 41731.- 11 -

The Department will monitor the average daily e nplanements and subsidy per passenger rate at each of the above communities during the upc oming contract. The Department highly encourages all parties involved to work together to maintain or in crease enplanements in order to remain in compliance with the statute.

Other Carrier Requirements The Department is responsible for implemen ting various Federal st atutes governing lobbying activities, drug-free workplaces, and nondiscrimination. 14 Consequently, all carriers receiving Federal subsidy for EAS must certify that they are in compliance with Department regulations regarding drug-free workplaces and nondiscrimi nation, and those carriers whose subsidies exceed $100,000 over the life of the contract must al so certify that they ar e in compliance with the regulations governing lobbying activities. Because the Depart ment is prohibited from paying subsidy to carriers that do not submit these docum ents, all carriers that plan to submit proposals involving subsidy should be aware that the selected car rier will be required to complete the required certifications. Interested carriers re quiring more detailed info rmation regarding these requirements should contact the Office of Aviation Analysis at (202) 366-5903.

Community Comments The Beckley community and the State of West Vi rginia 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 co mmunity’s 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 th e deadline for carrier pr oposals, and ask them to submit their final

comments.

This Order is issued under authorit y delegated in 49 CFR Part 1.25a(b).

ACCORDINGLY,

1. The Department selects Silver Airways to provide Essential Air Service at DuBois and Johnstown, Pennsylvania, Clarksburg/Fairm ont, Greenbrier/White Sulphur Springs, and Morgantown, West Virginia, Parkersburg, West Vi rginia/Marietta, Ohio, a nd Staunton, Virginia;

2. The Department selects Sun Air Express, LLC d/ b/a Sun Air Internationa l to provide Essential Air Service at Altoona, Pennsylva nia, and Jamestown, New York;

3. The Department requests proposals from carrier s interested in providing EAS at Beckley, West Virginia. Carriers should submit proposal s, with subsidy if necessary, by July 31, 2014. Proposals should be emailed to EAS@dot.gov, with the title “Proposal(s) to Provide EAS at Beckley;” 15

14 The certifications are also available on the web at http://www.dot.gov/policy/avia tion-policy/small-communityrural-air-service/essential-air-service

15 Questions regarding filings may be directed to Sc ott Faulk at 202-366-9967 or Scott.Faulk@dot.gov.- 12 -

4. The Department requires Silver Airways to con tinue its subsidized service at Beckley until a new carrier is selected and inaugur ates service, with its rate se t as described in Order 2012-4-32, issued on April 30, 2012, and detailed in Appendix B;

5. The Department requires Silver Airways to con tinue its subsidized se rvice at Bradford and Franklin/Oil City, Pennsylva nia, until further notice;

6. These Dockets will remain open until further Order of the Department; and

7. We will serve this Order on Mayors of Alt oona, Bradford, DuBois, Franklin, Johnstown, and Oil City, Pennsylvania; Jamestown, New York; Beckley, Clarksburg, Fairmont, White Sulphur Springs, Morgantown, and Parkersburg, West Virgin ia; Staunton, Virginia , the airport managers at Altoona-Blair County Regional Airport, Bradford Regional Air port, DuBois Regional Airport, Greenbrier Valley Airport, Jamestown-Chautauqua Airport, John Murtha Johnstown-Cambria County Airport, Venango Regiona l Airport (Franklin/Oil City ), Raleigh County Memorial Airport (Beckley), North Central West Virginia Airport (Clarksburg/Fa irmont), Morgantown Municipal Airport, Mid-Ohio Valley Regional Airport (Parkersburg/Ma rietta), Shenandoah Valley Regional Airport (Staunton), and the service list for these Dockets.

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

.Appendix A

AREA MAP

This map is provided by Sabre ® AirVision TM Profit Essentials and is being used with express permission of the copyright holder, Sabre Airline Solutions®Appendix B Page 1 of 11

Silver Airways Essential Air Service to be pr ovided at Altoona, Pennsylvania

Docket DOT-OST-2002-11446

Effective Period: August 1, 2014, through September 30, 2014

Scheduled Service: 18 week ly nonstop and one-stop round trips to Washington Dulles (IAD) Aircraft: 34-passenger Saab 340 Rate per Eligible Flight: $1,089 1 Weekly Ceiling: $39,204 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 th e required service, without prior approva l. The carrier understands that an aircraft take-off and landing at its scheduled destina tion 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 this rate, it must first notify th e 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 carri er 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 goa ls 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 th e stipulated service levels, the carrier may cease to provid e service to that specific location without regards to any requirement for notice of such cessation. Those adjustments in the levels of subsidy and/or service that are mutually agreed to in writin g by the Department and carrier do not constitute a total or partial reduction or cessation of payment.

Subsidy contract 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 September 30, 2014. The Government’s obligation for performance under this order beyond September 30, 2014, is subject to the availability of funds from which payment for services can be made. No legal liab ility on the part of the Government for any payment may arise for performance under this order beyond September 30 , 2014, until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond September 30, 2014, the Department will provide notice in writing to the carrier.

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

1 Annual compensation of $3,997,187 divided by 2 divided by 1,835 annual departures (36 weekly departures x 52 weeks x 98 percent completion). This compensation rate from Order 2012-4-30 was for Altoona and Johnstown. Johnstown now has its own rate (See Appendix B, Page 8 of 11).

2 36 flights per week multiplied by $1,089 per flight.Appendix B Page 2 of 11 Sun Air Express, LLC d/b/a Sun Air International Essential Air Service to be pr ovided at Altoona, Pennsylvania

Docket DOT-OST-2002-11446

Effective Period: October 1, 2014, through September 30, 2016 Scheduled Service: 26 weekly nonstop round trips to Pittsburgh (PIT) Aircraft: 8-seat Piper Chieftain Rate per Eligible Flight: $890 3

Weekly Ceiling: $46,280 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 th e required service, without prior approva l. The carrier understands that an aircraft take-off and landing at its scheduled destina tion 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 this rate, it must first notify th e 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 carri er 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 goa ls 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 th e stipulated service levels, the carrier may cease to provid e service to that specific location without regards to any requirement for notice of such cessation. Those adjustments in the levels of subsidy and/or service that are mutually agreed to in writin g by the Department and carrier do not constitute a total or partial reduction or cessation of payment.

Subsidy contract 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 September 30, 2014. The Government’s obligation for performance under this order beyond September 30, 2014, is subject to the availability of funds from which payment for services can be made. No legal liab ility on the part of the Government for any payment may arise for performance under this order beyond September 30 , 2014, until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond September 30, 2014, the Department will provide notice in writing to the carrier.

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

3 Annual compensation of $2,346,168 divided by the 2,636 annual departures (52 flights per week x 52 week x 97.5 percent completion).

4 52 arrivals and departures per week multiplied by $890 per flight.Appendix B Page 3 of 11

Silver Airways Essential Air Service to be provi ded at Beckley, West Virginia

Docket DOT-OST-1997-2761

Effective Period: August 1, 2014, through December 31, 2014 1 Scheduled Service: 12 weekly round trips (7 nonstop and 5 one-stop) to Washington Dulles (IAD) Intermediate stops and upline service: An intermediate stop is permitted on five (5) of the 12 weekly round trips

Aircraft: 34-seat Saab 340 Rate per Eligible Flight: $2,054 2

Weekly Ceiling: $49,296 3

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 Or der, including the service plans outlined in the Order and any other significant eleme nts of the required service, without prior appr oval. The carrier understands that an ai rcraft take-off and landing at its schedule d destination constitutes a comple ted flight; absent an explanat ion supporting subsidy eligibility for a flight that has not been completed, such as certain weather cancellations, only completed f lights are considered eligible fo r subsidy. In addition, if the carrier does not schedule or operate its flights in full conforma nce with the Order for a significant period, it may jeopardize its entire subsidy claim for the period in ques tion. If the carrier contemplates any such changes beyond the scope of the Order during the applicable period of this rate, it must first notif y the Office of Aviation Analysis in writing and receive written approval from the Department to be ensure d of full compensation. Should circumst ances 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 subsidy payment for a deviating flight should be adjusted or disallowed, the Department will consider the extent to which the goals of the program ar e 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 service levels, the carrier may cease to provide service to that specific location without rega rds to any requirement for notice of such cessation. Those adjustment s in the levels of subsidy and/or service that are mutually agreed to in writing by the Department and carrier do not cons titute a total or partial reduction or cessation of payment.

Subsidy contract 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, regulati ons, or amendments th ereto shall not operate to controvert the foregoing paragraph.

Funds may not be available fo r performance under this order beyond Septembe r 30, 2014. The Government’s obligation for performance under this order be yond September 30, 2014, is subject to the availability of funds from which payment for services can be made. No legal liability on the part of the Govern ment for any payment may arise for performance under this order beyond September 30, 2014, until funds are made available to the Department fo r performance. If sufficient funds are not made available for performance beyond September 30, 2014, the Department will provide notice in writing to the carrier.

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

1 Because an end date is needed as a budgetary mark er, we will select December 31, 2014. However, we will require Silver Airways to continue service at Beckley until further notice.

2 Annual compensation of $2,512,494 divided by the 1,223 annual departures (24 weekly departures x 52 weeks x 98 percent completion).

3 24 arrivals and departures per w eek multiplied by $2,054 per flight.Appendix B Page 4 of 11

Silver Airways Essential Air Service to be provided at Clarksburg/Fairmont, West Virginia

Docket DOT-OST-2005-20736

Effective Period: August 1, 2014, through September 30, 2016 Scheduled Service: 18 weekly nonstop and on e-stop round trips to Washington Dulles (IAD)

Aircraft: 34-seat Saab 340 Rate per Eligible Flight: $1,268 1

Weekly Ceiling: $45,648 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 destinatio n 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 beyon d the scope of the Order during the applicable period of this rate, it mu st 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 ca rrier to provide service on these rout es. The carrier must complete all flights that can be safely operated; flights that overfly po ints 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 goa ls 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 th e stipulated service levels, the carrier may cease to provid e service to that specific location without regards to any requirement for notice of such cessation. Those adjustments in the levels of subsidy and/or service that are mutually agreed to in writin g by the Department and carrier do not constitute a total or partial reduction or cessation of payment.

Subsidy contract 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 September 30, 2014. The Government’s obligation for performance under this order beyond September 30, 2014, is subject to the availability of funds from which payment for services can be made. No legal liab ility on the part of the Government for any payment may arise for performance under this order beyond September 30 , 2014, until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond September 30, 2014, the Department will provide notice in writing to the carrier.

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

1 Annual compensation of $2,310,252 divided by the 1,822 annual departures (6 flights per day x 313 days x 97 percent completion).

2 36 arrivals and departures per w eek multiplied by $1,268 per flight.Appendix C Page 5 of 11 Silver Airways Essential Air Service to be provided at DuBois, Pennsylvania

Docket DOT-OST-2004-17617

Effective Period: October 1, 2014, through September 30, 2016 Scheduled Service: 18 weekly nonstop and on e-stop round trips to Washington Dulles (IAD)

Aircraft: 34-seat Saab 340 Rate per Eligible Flight: $1,254 3

Weekly Ceiling: $45,144 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 th e required service, without prior approva l. The carrier understands that an aircraft take-off and landing at its scheduled destina tion 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 this rate, it must first notify th e 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 carri er 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 goa ls 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 th e stipulated service levels, the carrier may cease to provid e service to that specific location without regards to any requirement for notice of such cessation. Those adjustments in the levels of subsidy and/or service that are mutually agreed to in writin g by the Department and carrier do not constitute a total or partial reduction or cessation of payment.

Subsidy contract 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 September 30, 2014. The Government’s obligation for performance under this order beyond September 30, 2014, is subject to the availability of funds from which payment for services can be made. No legal liab ility on the part of the Government for any payment may arise for performance under this order beyond September 30 , 2014, until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond September 30, 2014, the Department will provide notice in writing to the carrier.

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

3 Annual compensation of $2,285,539 divided by the 1,822 annual departures (6 flights per day x 313 days x 97 percent completion).

4 36 arrivals and departures per w eek multiplied by $1,254 per flight.Appendix B Page 6 of 11 Silver Airways Essential Air Service to be provided at Greenbrier/White Sulphur Springs, West Virginia

Docket DOT-OST-2003-15553

Effective Period: August 1, 2014, through September 30, 2016 Scheduled Service: 7 weekly nonstop round tr ips and 7 weekly one-stop round trips to Washington Dulles (IAD) in the peak season fro m May 1 through October 31, and 6 weekly nonstop and 6 weekly one-stop round trips to Washington Dulles (IAD) in the off peak season from November 1 through April 30 1

Aircraft: 34-seat Saab 340 Rate per Eligible Flight: $2,732 2 Weekly Ceiling: $76,496 3 (May 1 – October 31); $65,568 (November 1 – April 30)

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 th e required service, without prior approva l. The carrier understands that an aircraft take-off and landing at its scheduled destina tion 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 this rate, it must first notify th e 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 carri er 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 goa ls 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 comple tely, 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 service levels, the carrier may cease to provide service to that specific location without regards to any requirement for notice of such cessation. Those adjustments in the levels of subsidy and/or service that are mutually agre ed to in writing by the Department and carrier do not constitute a total or partial reduction or cessation of payment.

Subsidy contract 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 September 30, 2014. The Government’s obligation for performance under this order beyond September 30, 2014, is subject to the availability of funds from which payment for services can be made. No legal liab ility on the part of the Government for any payment may arise for performance under this order beyond September 30 , 2014, until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond September 30, 2014, the Department will provide notice in writing to the carrier.

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

1 Silver may operate up to 7 round trips per week to Atlanta, GA , up to 50% of scheduled flights through January 31, 2015, for schedule transition purposes.

2 Annual compensation of $3,582,194 divide d by the 1,311 annual departures (28 f lights per week x 26 weeks x 97 percent completion = 706 + 24 flights per week x 26 weeks x 97 percent completion=605).

3 28 arrivals and departures per week multiplie d by $2,732 per flight (May 1 – October 31). 24 arrivals and departures per week multiplied by $2,732 per flight (N ovember 1 – April 30)Appendix C Page 7 of 11 Sun Air Express, LLC d/b/a Sun Air International Essential Air Service to be pr ovided at Jamestown, New York

Docket DOT-OST-2003-14950

Effective Period: October 1, 2014, through September 30, 2016 Scheduled Service: 24 weekly nonstop round trips to Pittsburgh (PIT) Aircraft: 8-seat Piper Chieftan Rate per Eligible Flight: $838 4

Weekly Ceiling: $40,224 5

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 th e required service, without prior approva l. The carrier understands that an aircraft take-off and landing at its scheduled destina tion 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 this rate, it must first notify th e 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 carri er 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 goa ls 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 comple tely, 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 service levels, the carrier may cease to provide service to that specific location without regards to any requirement for notice of such cessation. Those adjustments in the levels of subsidy and/or service that are mutually agre ed to in writing by the Department and carrier do not constitute a total or partial reduction or cessation of payment.

Subsidy contract 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 September 30, 2014. The Government’s obligation for performance under this order beyond September 30, 2014, is subject to the availability of funds from which payment for services can be made. No legal liab ility on the part of the Government for any payment may arise for performance under this order beyond September 30 , 2014, until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond September 30, 2014, the Department will provide notice in writing to the carrier.

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

4 Annual compensation of $2,045,481 divided by the 2,441 annual departures (8 flights per day x 313 days x (or 97.5%) percent completion).

5 48 arrivals and departures per week multiplied by $838 per flight.Appendix B Page 8 of 11 Silver Airways Essential Air Service to be pr ovided at Johnstown, Pennsylvania

Docket DOT-OST-2002-11451

Effective Period: August 1, 2014, through September 30, 2016 Scheduled Service: 18 weekly nonstop and one-stop round trips to Washington Dulles

Aircraft: 34-seat Saab 340 Rate per Eligible Flight: $1,338 1

Weekly Ceiling: $48,168 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 th e required service, without prior approva l. The carrier understands that an aircraft take-off and landing at its scheduled destina tion 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 this rate, it must first notify th e 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 carri er 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 goa ls 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 comple tely, 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 service levels, the carrier may cease to provide service to that specific location without regards to any requirement for notice of such cessation. Those adjustments in the levels of subsidy and/or service that are mutually agre ed to in writing by the Department and carrier do not constitute a total or partial reduction or cessation of payment.

Subsidy contract 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 September 30, 2014. The Government’s obligation for performance under this order beyond September 30, 2014, is subject to the availability of funds from which payment for services can be made. No legal liab ility on the part of the Government for any payment may arise for performance under this order beyond September 30 , 2014, until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond September 30, 2014, the Department will provide notice in writing to the carrier.

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

1 Annual compensation of $2,438,254 divided by the 1,822 annual departures (6 flights per day x 313 days x 97 percent completion).

2 36 arrivals and departures per w eek multiplied by $1,338 per flight.Appendix B Page 9 of 11 Silver Airways Essential Air Service to be provided at Morgantown, West Virginia

Docket DOT-OST-2005-20735

Effective Period: August 1, 2014, through September 30, 2016 Scheduled Service: 18 weekly nonstop and one-stop round trips to Washington Dulles (IAD)

Aircraft: 34-seat Saab 340 Rate per Eligible Flight: $1,285 1 Weekly Ceiling: $46,260 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 th e required service, without prior approva l. The carrier understands that an aircraft take-off and landing at its scheduled destina tion 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 this rate, it must first notify th e 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 carri er 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 goa ls 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 comple tely, 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 service levels, the carrier may cease to provide service to that specific location without regards to any requirement for notice of such cessation. Those adjustments in the levels of subsidy and/or service that are mutually agre ed to in writing by the Department and carrier do not constitute a total or partial reduction or cessation of payment.

Subsidy contract 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 September 30, 2014. The Government’s obligation for performance under this order beyond September 30, 2014, is subject to the availability of funds from which payment for services can be made. No legal liab ility on the part of the Government for any payment may arise for performance under this order beyond September 30 , 2014, until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond September 30, 2014, the Department will provide notice in writing to the carrier.

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

1 Annual compensation of $2,342,074 divided by the 1,822 annual departures (6 flights per day x 313 days x 97 percent completion).

2 36 arrivals and departures per w eek multiplied by $1,285 per flight.Appendix B Page 10 of 11 Silver Airways Essential Air Service to be provide d at Parkersburg, WV/Marietta, OH

Docket DOT-OST-2005-20734

Effective Period: October 1, 2014, through September 30, 2016 Scheduled Service: 18 weekly nonstop and on e-stop round trips to Washington Dulles (IAD)

Aircraft: 34-seat Saab 340 Rate per Eligible Flight: $1,924 1

Weekly Ceiling: $69,264 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 th e required service, without prior approva l. The carrier understands that an aircraft take-off and landing at its scheduled destina tion 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 this rate, it must first notify th e 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 carri er 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 goa ls 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 comple tely, 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 service levels, the carrier may cease to provide service to that specific location without regards to any requirement for notice of such cessation. Those adjustments in the levels of subsidy and/or service that are mutually agre ed to in writing by the Department and carrier do not constitute a total or partial reduction or cessation of payment.

Subsidy contract 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 September 30, 2014. The Government’s obligation for performance under this order beyond September 30, 2014, is subject to the availability of funds from which payment for services can be made. No legal liab ility on the part of the Government for any payment may arise for performance under this order beyond September 30 , 2014, until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond September 30, 2014, the Department will provide notice in writing to the carrier.

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

1 Annual compensation of $3,505,876 divided by the 1,822 annual departures (6 flights per day x 313 days x 97 percent completion).

2 36 arrivals and departures per w eek multiplied by $1,924 per flight.Appendix B Page 11 of 11

Silver Airways Essential Air Service to be pr ovided at Staunton, Virginia

Docket DOT-OST-2002-11378

Effective Period: August 1, 2014, through September 30, 2016 Scheduled Service: 18 weekly nonstop and one -stop round trips to Washington Dulles (IAD)

Aircraft: 34-seat Saab 340 Rate per Eligible Flight: $1,087 1

Weekly Ceiling: $39,132 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 servi ce plans outlined in the Order and any other significant elements of the required service, without prior approval . The carrier understands that an aircra ft take-off and landing at its scheduled destination constitutes a completed flight; absent an explanati on supporting subsidy eligibility for a flight that has not been completed, such as certain weather cancellations, only completed f lights are considered eligible for subsidy. In addition, if the carrier does not schedule or operate its f lights 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 this ra te, it must first notify the O ffice 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 ar e met and the extent of access to the national air transportation system provided to the community.

If the Department unilaterally, either partially or completely, te rminates 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 service levels, the carrier ma y cease to provide serv ice to that specific location without rega rds to any requirement for notice of such cessation. Those adjustment s in the levels of subsidy and/or service that are mutually agreed to in writing by the Department and carrier do not co nstitute a total or partial reduction or cessation of payment.

Subsidy contract 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 September 30, 2014. The Government’s obligation for performance under this order beyond September 30, 2014, 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 beyon d September 30, 2014, until funds are made available to the Department for performance. If sufficient funds are not made availab le for performance beyond September 30, 2014, the Depart ment will provide notice in writing to the carrier.

All claims for payment, includin g 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 31; August claims must be submitted by November 30, and so on

1 Annual compensation of $1,980,922 divided by the 1,822 annual departures (6 flights per day x 313 days x 97 percent completion).

2 36 arrivals and departures per w eek multiplied by $1,087 per flight.