Order: 2012-5-10

Served: May 9, 2012

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 9th day of May, 2012

Essential Air Service at

BRADFORD, PENNSYLVANIA

DuBOIS, PENNSYLVANIA

OIL CITY/FRANKLIN, PENNSYLVANIA

JAMESTOWN, NEW YORK

KIRKSVILLE, MISSOURI

PARKERSBURG, WEST VIRGINIA/

 MARIETTA, OHIO

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

 Docket DOT-OST-2003-14528

 Docket DOT-OST-2004-17617

 Docket DOT-OST-1997-2523

 Docket DOT-OST-2003-14950

 Docket DOT-OST-1997-2515

 Docket DOT-OST-2005-20734

ORDER REQUESTING PROPOSALS

Summary

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

Essential Air Service (EAS) at Bradford, DuBois, and Oil City/Franklin (“Franklin”), 

Pennsylvania; Jamestown, New York; Kirksville, Missouri; and Parkersburg, West 

Virginia/Marietta, Ohio (“Parkersburg”), beginning October 1, 2012, through September 30, 

2014, with or without subsidy. Proposals are due June 7, 2012. (See Appendix A for an area 

map.) 

Background

By a series of Orders,1 the Department selected Gulfstream International Airlines, which was 

renamed Silver Airways (“Silver”) in December 2011, to provide subsidized EAS at Bradford, 

 1 Order 2010-6-6, June 3, 2010 (Kirksville); Order 2010-6-25, June 29, 2010 (Parkersburg); and Order 2010-9-12, 

September 9, 2010 (Bradford, DuBois, Franklin, and Jamestown). 
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DuBois, Franklin, Jamestown, and Parkersburg, and Hyannis Air Service, Inc. d/b/a Cape Air 

(“Cape Air”) at Kirksville, for a two-year period. Silver was re-selected at Bradford, DuBois, 

Franklin, and Jamestown, for the two-year period from October 1, 2010, through September 30, 

2012. The annual subsidy amounts are as follows: Bradford ($1,087,306), DuBois ($2,228,996), 

Franklin ($915,101), Jamestown ($1,639,254), Kirksville ($1,422,110), and Parkersburg 

($2,642,237). Cape Air inaugurated service to Kirksville on September 17, 2010, and Silver 

began service to Parkersburg on October 1, 2010, thus making all the contracts expire on

September 30, 2012. Cape Air operates its service to Kirksville with nine-passenger, twinengine Cessna 402 aircraft to Lambert-St. Louis International Airport under a code-share 

agreement with American Airlines. Silver operates its service to the five other communities with 

19-passenger Beech 1900 aircraft to Cleveland Hopkins International Airport under a code-share 

agreement with United Airlines.

Request for Proposals

We are here requesting proposals from carriers interested in providing service at the six communities 

named above, with or without subsidy, to be filed no later than June 7, 2012. After that date, our 

staff will docket the proposals, thereby making them public. Shortly afterwards, we will provide a 

summary of the proposals to the communities and ask them to submit their final comments. We will 

give full consideration to all proposals that are timely filed.2 

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

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

proposals with carriers when we deem it desirable. We also retain the discretion to reject outright all 

unreasonable or unrealistic proposals and solicit a new round of proposals.

We are here providing interested carriers with some basic information to serve as guidance when 

they prepare their proposals, but we will not prescribe a precise format for their proposals. We 

expect proposals to adequately describe the service being proposed and the annual amount of 

subsidy being requested. The applicants can make their own judgments as to the level of detail 

they wish to present; however, they might want to include proposed schedules as well as 

supporting data for their subsidy requests, such as projected block hours, revenues and expenses. 

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

the affected communities and the Department.3

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

Essential Air Service without subsidy and we determine that service can be reliably provided without such 

compensation, we typically do not proceed with the carrier-selection case. Instead, we simply rely on that carrier’s 

subsidy-free service as proposed.

3 In selecting a carrier to provide subsidized Essential Air Service, 49 U.S.C. 41733(c) (1) directs us to consider 

four factors: (1) service reliability; (2) contractual and marketing arrangements with a larger carrier at the hub; (3) 

interline arrangements with a larger carrier at the hub; and (4) community views. In addition, the Consolidated 

Appropriations Act, 2008, Public Law 110-161, provides that when selecting a carrier to provide EAS, the 

Department may consider the relative subsidy requirements, thus codifying a factor that we have considered since 

the inception of the program. Interested carriers should also be aware that our general provisions governing 

Essential Air Service will be included in the selection order as part of our authorization of subsidy for the selected

service. Appendix C of this order contains those general provisions. 
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With respect to all six communities, we ask that carriers submit proposals for service consistent 

with the communities are currently receiving. For DuBois and Parkersburg, four round trips per 

weekday and weekend (24 total per week) with 19-seat aircraft. Parkersburg’s service should be 

all nonstop to/from the hub. For Bradford and Jamestown, three nonstop or one-stop round trips 

each weekday and weekend (18 total per week) with 19-seat aircraft. For Kirksville, three round 

trips each day (21 total per week) with nine-seat aircraft. For Franklin, two round trips each 

weekday and weekend (12 total per week) with 19-seat aircraft. Service should serve to

Cleveland, Detroit, Washington Dulles, St. Louis, or another suitable hub where numerous 

connections to the national air transportation system can be made. The Department may 

consider larger aircraft with fewer frequencies per day or if smaller aircraft are proposed (for 

communities other than Kirksville), we will consider additional frequencies.

If the Department receives proposals for single-engine aircraft, and the community ultimately 

supports the service, in effect waiving their right to twin-engine aircraft, we would consider the 

waiver to apply only to the carrier-selection at hand, i.e. we would not assume that the 

community would waive their rights for all time4. As always, we will formally solicit the 

communities’ views on any service options we receive before making a long-term carrier 

selection decision. 

The communities and air carriers are encouraged to work together in advance of the due date for 

proposals to craft a service pattern that is desirable to the community and meets the operational 

needs of the airline interested in submitting a proposal. In addition, carriers should be very clear 

as to whether a specific community’s proposal is on a stand-alone basis, or whether it is part of a 

larger, inseparable package with other communities.

We encourage proposals that meet these 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 those requirements if they envision other, potentially more attractive service possibilities --

different hubs or length of service terms, for example -- with subsidy requirements that remain 

competitive.

Special discussion concerning Jamestown and Franklin

Based on the most recent 12-month period for which data are available (January 1, 2011, through 

December 31, 2011), 6,895 passengers were enplaned and deplaned at Jamestown, while 2,531

passengers were enplaned and deplaned at Franklin. The annual subsidy amount for Jamestown

is $1,639,254 and Franklin’s is $915,101. Therefore, the subsidy per passenger at Jamestown is 

$238 and $362 at Franklin. The Department is prohibited from subsidizing air service at a 

community where the subsidy per passenger exceeds $200, unless the community is more than 

210 highway miles from the nearest large or medium hub airport5. Jamestown and Franklin 

exceed the $200 per passenger cap and both are fewer than 210 miles from a large or medium 

 4 Previously, most EAS communities were entitled to service with 15-seat or larger aircraft. However, in the 

Department’s FY2012 appropriation (Consolidated and Further Continuing Appropriations Act, P.L. 112-55, 

November 18, 2011), Congress repealed the 15-seat guarantee, although communities are still entitled to service 

with twin-engine aircraft.

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

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

Agencies Appropriations Act of 2000.
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hub. Jamestown is 77 miles from Buffalo Niagara International Airport (BUF) and Franklin is 

85 miles from Pittsburgh International Airport (PIT).

Regarding Franklin’s subsidy per passenger, in Order 2008-5-3, May 6, 2008, we expressed our

concern that the subsidy level for Franklin was high when viewed in the context of passenger 

usage. The Department encouraged the community and Silver (then known as Gulfstream) to 

work together to maximize use of the service to avoid exceeding the $200 per passenger cap. 

We also addressed Franklin’s high subsidy per passenger again in Order 2010-9-12, 

September 9, 2010, when we re-selected Silver to serve another two-year term. We noted that 

Silver had a plan to work with the community and airport to partner in a large marketing 

outreach program to increase passenger usage. Examining passenger traffic (see Appendix B), 

we see that passenger traffic has not increased, but in fact, has fallen, from 2,749 passengers in 

CY2010 to 2,531 passenger in CY2011.

Rather than terminate service eligibility at either community, at this stage, the Department will 

solicit proposals for EAS at both, but the Department will evaluate all proposals submitted 

before committing to a two-year contract or making a final determination on Jamestown and 

Franklin’s continuing eligibility. Prior to the due date for proposals, we expect both 

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

the carriers may face in an attempt to lower their subsidy levels.

Special discussion concerning Bradford and Franklin

The current average daily enplanements at Bradford and Franklin are 8.8 and 4.0, respectively. 

Commensurate with the FAA Modernization and Reform Act of 2012, February 14, 2012, P.L. 112-

95, communities will not be eligible for subsidized EAS if enplanements per day are fewer than 10 

and the community is located within 175 driving miles of a large or medium hub airport. Bradford is 

76 miles from Buffalo Niagara International Airport, a medium hub airport, and Franklin is 85 miles 

from Pittsburgh International Airport, also a medium hub. As stated in P.L. 112-95, the fewer than 

10 enplanements per day provision will be measured using FY2013 passenger data (October 1, 2012, 

through September 30, 2013). That data will likely be available by January 2014, and the 

communities’ eligible status will be determined accordingly. Any carrier that proposes service at 

Bradford and/or Franklin should be aware of this situation and aggressively promote and stimulate 

traffic at both communities to ensure their continued eligibility in the EAS Program.

New Filing Procedures

Carrier proposals should be submitted to the Department with all materials merged into a single 

document. The document will be published on Regulations.gov and each page should be 

formatted to be viewed online. 

Service and Traffic History

In order to assist carriers in making their traffic and revenue forecasts, we have included historical 

traffic data in Appendix B. For the 12-month period ending December 31, 2011, the most recent 

period for which traffic data are available, Bradford averaged 8.8 enplanements a day, DuBois 18.9, 

Franklin 4.0, Jamestown 11.1, Kirksville 13.6, and Parkersburg 23.6.6 

 6 See Appendix B for historical traffic data. Enplanements represent one-half of total origin-and-destination traffic, 

and average enplanements per day are based on 77 weekdays and weekends each quarter, except as noted.
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Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.7 Consequently, all carriers receiving 

Federal subsidy for essential air service must certify that they are in compliance with Department 

regulations regarding drug-free workplaces and nondiscrimination, and those carriers whose 

subsidies exceed $100,000 over the life of the rate term must also certify that they are in 

compliance with the regulations governing lobbying activities. Because the Department is 

prohibited from paying subsidy to carriers that do not submit these documents, all carriers that 

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

required to complete the required certifications. Interested carriers requiring more detailed 

information regarding these requirements should contact the Office of Aviation Analysis at 

(202) 366-5903.8

Community and State Comments

The communities and states are welcome to submit comments on the proposals at any time. As 

noted earlier, however, we will provide a summary of the proposals to the civic parties and ask 

them to submit their final comments shortly after June 7, 2012, the due date for proposals.

This Order is issued under authority delegated in 49 CFR 1.56a(f) and re-delegated to the 

Director, Office of Aviation Analysis. 

ACCORDINGLY,

1. We request that carriers interested in providing Essential Air Service at Bradford, DuBois, 

Franklin, Jamestown, Kirksville, and/or Parkersburg, for the two-year period from October 1, 

2012, through September 30, 2014, submit their proposals, with or without requests for subsidy, 

no later than June 7, 2012. The proposals should be e-mailed to EAS@dot.gov, with the title: 

“Proposal to provide EAS at Bradford, DuBois, Franklin, Jamestown, Parkersburg, and/or

Kirksville;9

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

3. We will serve copies of this Order on the Mayors of Bradford, DuBois, Franklin, Oil City, 

Jamestown, Kirksville, Parkersburg, and Marietta, the managers of Bradford Regional Airport,

DuBois Regional Airport, Venango Regional Airport (Oil City/Franklin), Chautauqua County-

 7 The regulations applicable to these areas are: (1) 49 CFR Part 20 – New restrictions on lobbying; (2) 49 CFR Part 

21 – Nondiscrimination in federally-assisted programs of the Department of Transportation – Effectuation of title VI 

of the Civil Rights Act of 1964; 49 CFR Part 27 – Nondiscrimination on the basis of disability in programs and 

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

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

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

9 Questions regarding filings in response to this order may be directed via electronic mail to Kevin Schlemmer at 

kevin.schlemmer@dot.gov or via phone at (202) 366-3176.
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Jamestown Airport, Kirksville Regional Airport, and Mid-Ohio Valley Regional Airport

(Parkersburg/Marietta), and the service list for these dockets. 

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

Aviation Economic Regulations, 14 CFR 385.50, must file such petitions within ten (10) days 

after the date of service of this Order.

This Order will be effective immediately, and the filing of a petition for review shall not 

preclude its effectiveness.

By:

TODD M. HOMAN

 Director

Office of Aviation Analysis

(SEAL)

An electronic version of this document is available at http://www.regulations.gov
Appendix A

Page 1 of 2

AREA MAP

New York/Pennsylvania/West Virginia

This map is provided by Sabre® AirVisionTM Profit Essentials and is being used with express permission of the 

copyright holder, Sabre Airline Solutions®.
Appendix A

Page 2 of 2

AREA MAP

Missouri

This map is provided by Sabre® AirVisionTM Profit Essentials and is being used with express permission of the 

copyright holder, Sabre Airline Solutions®.
 Appendix B

 

Traffic History*

Stn Year O&D Pax

BFD 2009 5,028

BFD 2010 5,786

BFD 2011 5,495

DUJ 2009 10,312

DUJ 2010 11,290

DUJ 2011 11,836

FKL 2009 2,841

FKL 2010 2,749

FKL 2011 2,531

JHW 2009 7,083

JHW 2010 7,234

JHW 2011 6,895

PKB 2009 10,104

PKB 2010 10,129

PKB 2011 14,792

IRK 2009 1,877

IRK 2010 4,041

IRK 2011 9,952

Average daily enplanements for CY2011**

• Bradford (BFD) – 8.8

• DuBois (DUJ) – 18.9

• Oil City/Franklin (FKL) – 4.0

• Jamestown (JHW) – 11.0

• Parkersburg (PKB) – 23.6

• Kirksville (IRK) – 13.6

*Source – Silver Airways and TranStats T-100 market data

** Average daily enplanements=total traffic divided by 313 service days divided by 2, except for Kirksville. Since 

Kirksville receives 3 round trips each day, its total traffic is divided by 365 service days.
Appendix C

Example of General Terms and Conditions for Essential Air Service

The carrier understands that it may forfeit its compensation for any flights that it does not 

operate in conformance with the terms and stipulations of the rate order, including the 

service plans outlined in the order and any other significant elements of the required 

service, without prior approval. The carrier understands that an aircraft take-off and 

landing at its scheduled destination constitutes a completed flight; absent an explanation 

supporting subsidy eligibility for a flight that has not been completed, such as certain 

weather cancellations, only completed flights are considered eligible for subsidy. In 

addition, if the carrier does not schedule or operate its flights in full conformance with the 

order for a significant period, it may jeopardize its entire subsidy claim for the period in 

question. If the carrier contemplates any such changes beyond the scope of the order 

during the applicable period of these rates, it must first notify the Office of Aviation 

Analysis in writing and receive written approval from the Department to be ensured of 

full compensation. Should circumstances warrant, the Department may locate and select 

a replacement carrier to provide service on these routes. The carrier must complete all 

flights that can be safely operated; flights that overfly points for lack of traffic will not be 

compensated. In determining whether subsidy payment for a deviating flight should be 

adjusted or disallowed, the Department will consider the extent to which the goals of the 

program are met and the extent of access to the national air transportation system 

provided to the community.

If the Department unilaterally, either partially or completely, terminates or reduces payments for 

service or changes service requirements at a specific location provided for under this order, then, 

at the end of the period for which the Department does make payments in the stipulated amounts 

or at the stipulated service levels, the carrier may cease to provide service to that specific location 

without regard to any requirement for notice of such cessation. Those adjustments in the levels of 

subsidy and/or service that are mutually agreed to in writing by the Department and carrier do not 

constitute a total or partial reduction or cessation of payment.

Subsidy contracts are subject to, and incorporate by reference, relevant statutes and

Department regulations, as they may be amended from time to time. However, any such 

statutes, regulations, or amendments thereto shall not operate to controvert the foregoing 

paragraph.

Funds are not currently available for performance under this solicitation beyond [DATE]. 

The Government’s obligation for performance under this solicitation beyond [DATE], is 

contingent upon the availability of appropriated funds from which payment for services 

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

for performance under this order beyond [DATE], until funds are made available to the 

Department for performance. If funds are not made available for performance beyond 

[DATE], the carrier will receive notice in writing by the Department.

All claims for payment must be submitted within 60 days of the last day of service 

provided under this order.