Order: 2013

- 9

- 17

Served: September 2 4, 013



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 24 th day of Septembe r 2 0 1 3

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 th is O rder, 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

Dec ember 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 c ombined 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 Fairbanks

Central

- 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 a ppro aching, we issued Order 2013

- 7

- 9

, issued on July 11, 2013 , requesting proposals from air carriers interested i n providing EAS at the

communities for a new term. In res ponse to tha t 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 Nava jo 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 proposa l, 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 w e find the su bsidy and service levels proposed by Warbelow’s to be reasonable.

We shall make this selection of Warbelow’s at Central and Circle c ontingent upon the Department receiving properly executed certifications from the air carrier that it is in compliance with the Department’s regu lations 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 c au se 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

cond uct 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- 3

-

ACCORDINGLY,

1. We re

- select Warbelow’s Air Ventures, Inc. to provide Essential Air S ervice 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 f irst. 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 f i nd that Warbelow’s Air Service, Inc. is fit, willing and able to operate as a

c ertificated air carrie r
, and capable of providing reliable Essential Air S ervice at Central and Circle, Alaska ;

4

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

5 . We will serve copies of thi s Order on the Alaska Department of Transportation, the community leaders of Central and Circle, and Warbelow’s Air Ventures, Inc

.

B y:

SUSAN L. KURLAND Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is ava ilable at http://www.regulations.govAppendix A



## AREA MAPAppendix B Page 1 of 2



### Warbelow’s Proposal for EAS at Central and CircleAppendix B Page 2 of 2



### Warbelow’s Proposal for EAS at Central and CircleAppendix 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: $ 294 1
Weekly Ceiling for each community : $ 2,940 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, inclu ding 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; abs ent 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 fli ghts 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 servic e 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. I n 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 ther eto 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 wi thin 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 A nnual compensation of $ 305,803 divide d by 1,040 annual departures (10 wee kly departures x 2 communities x 52 weeks x 100 percent completion)

. 2 10 arrivals and depart ures per week multiplied by $294 per flight

.