Order: 2013-9-17

Served: September 24,013

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 24th day of September 2013

Essential Air Service at

CENTRAL, ALASKA

CIRCLE, ALASKA

DOCKET DOT-OST-1998-3621

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

ORDER RE-SELECTING AIR CARRIER

Summary

By this Order, the Department is re-selecting Warbelow’s Air Service, Inc. (Warbelow’s)

to provide Essential Air Service (EAS) at Central and Circle, Alaska, for a combined 

annual subsidy of $305,803 ($152,902 for each community).

1

 Warbelow’s will provide 

five weekly round trips using 8-seat Piper Navajo Chieftan (PA31-350) aircraft over a 

Fairbanks-Central-Circle-Fairbanks routing for a two-year term beginning 

December 1, 2013.

Background

By Order 2011-9-11, issued on September 15, 2011, the Department re-selected 

Warbelow’s to provide EAS at Central and Circle for a combined annual subsidy of 

$275,598 ($137,799 for each community) from December 1, 2011, through 

November 30, 2013. Warbelow’s provides five weekly round trips over a FairbanksCentral-Circle-Fairbanks routing with 9-seat Cessna 208B aircraft.

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of funds.
- 2 -

As the end of the contract was approaching, we issued Order 2013-7-9, issued on 

July 11, 2013, requesting proposals from air carriers interested in providing EAS at the 

communities for a new term. In response to that Order, the incumbent, Warbelow’s, was 

the only airline to submit a proposal.

The airline’s complete proposal and the communites’ comments may be accessed online at 

www.regulations.gov by entering DOT-OST-1998-3621 in the search block. 

Proposal of Warbelow’s

Warbelow’s proposed status-quo service of five weekly round trips five days a week over a 

Fairbanks-Central-Circle-Fairbanks routing for an annual subsidy of $305,803, using 8-

seat Piper Navajo Chieftan PA31-350 aircraft.

Community Comments

The Department solicited comments from the community leaders of Central and Circle, as 

well as the Alaska Department of Transportation. The Circle Tribal Council submitted a 

letter with Warbelow’s proposal, stating that it supported Warbelow’s, adding that the 

airline’s service was critical to the community. No comments were received by officials 

from the Alaska Department of Transportation or the community of Central.

Decision

Warbelow’s was the only airline to submit a proposal to provide EAS at Central and 

Circle. Warbelow’s has reliably served Central and Circle for several years and it is an 

established EAS air carrier. It has received community support, and we find the subsidy 

and service levels proposed by Warbelow’s to be reasonable.

We shall make this selection of Warbelow’s at Central and Circle contingent upon the 

Department receiving properly executed certifications from the air carrier that it is in 

compliance with the Department’s regulations regarding drug-free workplaces and 

nondiscrimination, as well as the regulations concerning lobbying activities.2

Carrier Fitness

49 U.S.C. §§ 41737(b) and 41738 require that we find an air carrier fit, willing, and able to 

provide reliable service before we may subsidize it to provide EAS. Warbelow’s is subject 

to the Department’s continuing fitness requirements, and no information has come to our 

attention that would cause us to question the air 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 findings. We therefore conclude that the airline remains fit to 

conduct the operations proposed here.

This Order is issued under authority delegated in 49 CFR 1.25a(b).

 2 The certifications are available online under “Reports and Publications” at 

http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/essential-air-service
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ACCORDINGLY,

1. We re-select Warbelow’s Air Ventures, Inc. to provide Essential Air Service at Central 

and Circle, Alaska, and establish the annual subsidy rate as described in Appendix C;

2. We direct Warbelow’s Air Ventures, Inc., 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 

from the service date of this Order 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;

3. We find that Warbelow’s Air Service, Inc. is fit, willing and able to operate as a 

certificated air carrier, and capable of providing reliable Essential Air Service at Central 

and Circle, Alaska;

4. This docket will remain open pending further Department action; and

5. We will serve copies of this Order on the Alaska Department of Transportation, the 

community leaders of Central and Circle, and Warbelow’s Air Ventures, Inc.

By:

SUSAN L. KURLAND

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available at

http://www.regulations.gov
Appendix A

AREA MAP

 
 Appendix B

Page 1 of 2

Warbelow’s Proposal for EAS at Central and Circle

 
Appendix B

Page 2 of 2

Warbelow’s Proposal for EAS at Central and Circle
 Appendix C

Warbelow’s Air Ventures, Inc.

Essential Air Service to be Provided at Central and Circle, Alaska

Effective Period: December 1, 2013, through November 30, 2015

Scheduled Service: Five weekly round trips over a Fairbanks-Central-Circle-Fairbanks routing

Aircraft: 8-seat Piper PA31-350

Rate per Eligible Flight: $2941

Weekly Ceiling for each community: $2,9402

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 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 this rate, it must first notify the Office of Aviation Analysis in 

writing and receive written approval from the Department to be ensured of full compensation. Should circumstances 

warrant, the 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 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 agreed 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, 2013. The Government’s obligation for 

performance under this order beyond September 30, 2013, is subject to the availability of funds from which payment for 

services can be made. No legal liability on the part of the Government for any payment may arise for performance under this 

order beyond September 30, 2013, until funds are made available to the Department for performance. If sufficient funds are 

not made available for performance beyond September 30, 2013, 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 $305,803 divided by 1,040 annual departures (10 weekly departures x 2 communities x

52 weeks x 100 percent completion). 2

10 arrivals and departures per week multiplied by $294 per flight.