Order 2012-8-37

Served: August 30, 2012

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 30th day of August, 2012

ORDER REQUESTING PROPOSALS

Summary

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

providing essential air service (EAS) at Dickinson, North Dakota, for a new contract

period, beginning February 1, 2013, with or without subsidy. (See Appendix A for a 

service area map). Carriers should file their proposals no later than September 28, 2012.

Background

By Order 2010-11-16, November 16, 2010, the Department selected Great Lakes 

Aviation, Ltd. (Great Lakes), operating as both a Frontier Airlines and United Airlines 

code-share partner, to provide subsidized EAS at Dickinson through January 31, 2013. 

Under that Order, Great Lakes provides Dickinson with three nonstop round trips to 

Denver each weekday and each weekend with allowable service to an upline community 

on six of the eighteen weekly round trips, utilizing 30-seat Embraer Brasilia aircraft for 

an annual subsidy rate of $2,019,027. Great Lakes has historically operated the service 

over a Williston-Dickinson-Denver routing, although Williston is not an EAS 

community.

Request for Proposals

As the end of the current contract approaches, we are here requesting proposals from 

carriers interested in providing service at Dickinson, with or without subsidy, for the twoyear period beginning February 1, 2013. Carriers should file their proposals no later than 

September 28, 2012. At the end of that period, our staff will docket proposals, thereby 

making them public, and direct each carrier to serve a copy of its proposal on the civic 

parties and other applicants. Shortly afterwards, we will provide a summary of the 

Essential Air Service at

DICKINSON, NORTH DAKOTA

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

Docket DOT-OST-1995-697
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proposals to the community and ask them to submit their final comments. We will give 

full consideration to all proposals that are timely filed.1

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 re-solicit a new 

round of proposals. However, negotiation and rejection are only occasional exceptions to 

the rule.

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, welldocumented proposals that will facilitate their evaluation by the affected community and 

the Department.2

With specific respect to Dickinson, historically, Great Lakes has provided subsidy-free 

service at Williston upline from Dickinson over a Williston-Dickinson-Denver routing. 

Williston is also a relatively strong traffic-generating community. If carriers propose 

serving both communities over the historical itinerary, we would consider proposals 

consisting of three round trips a day with 30-seat aircraft or four round trips a day 

utilizing 19-seat aircraft. Carriers may incorporate Williston service into the subsidy 

calculations in one of two ways. The first is simply to provide a subsidy requirement 

estimate of the Dickinson-Denver nonstop turnaround service with the caveat that the 

applicant be permitted to serve Williston upline. The second is to provide a cost 

estimates of the full Williston-Dickinson-Denver service. In the latter case, carriers 

should demonstrate that the addition of the incremental expenses and revenues associated 

with the Dickinson-Williston segment does not increase the required subsidy amount, 

because that would effectively result in subsidy for Williston service which would not be 

 1 Carriers should not expect the Department to accept late fillings. 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, wetypically do not proceed with the carrier-selection case. Instead, we simply rely on 

that carrier’s subsidy-free service as proposed.

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

consider four factors: (a) scheduled service reliability; (b) contractual and marketing arrangements with a 

larger carrier to ensure service beyond the hub; (c) interline arrangements that the applicant has made with a 

larger carrier at the hub; and (d) community views, giving substantial weight to the views of the elected 

officials representing the users. 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.
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acceptable, as Williston is not an EAS community.3 If carriers propose to serve 

Dickinson by itself, we expect two or three round trips a day with 30-seat aircraft or three

or four round trips with 19-seaters.

We encourage proposals that meet Dickinson’s EAS 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 above described requirements if they envision other, 

potentially more attractive service possibilities (e.g., utilization of larger aircraft, 

additional flights or service to different hubs) with subsidy requirements that remain 

competitive.

New Filing Procedures

Carrier proposals should be submitted to the Department with all materials compiled into 

a single document. In addition, because the document will be published on 

http://www.regulations.gov/, each page should be formatted to be viewed online and for 

easy printing.

Service and Traffic History

Great Lakes has served Dickinson and Williston since 2002. Because carriers may well 

include Williston in the routing, we have included historical traffic for both communities 

in Appendix B. During the year ended December 31, 2011, Dickinson averaged 59.4

enplanements a day, Williston 81.8. We note that traffic has increased fivefold from 

2003 to 2011, and so we expect that the prospective subsidy requirement would decrease.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing 

lobbying activities, drug-free workplaces, and nondiscrimination.4 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 

 3 P.L. 112-95 defines an EAS community as one that received subsidized EAS “at any time during the 

period between September 30, 2010, and September 30, 2011...” Therefore, Williston is not an EAS 

community.

4 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 (non-procurement) and governmentwide requirements for drug-free workplace (grants).
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certifications. Interested carriers requiring more detailed information regarding these 

requirements should contact the Office of Aviation Analysis at (202) 366-5903.5

Community and State Comments

The community and State are welcome to submit comments at any time. We encourage 

prospective applicants to contact the community before they submit their proposals so 

that they can tailor them to the community’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 and ask them to submit their final comments shortly after September 28, 

the deadline for carrier proposals.

This order is issued under authority delegated in 49 CFR Part 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 Dickinson, 

North Dakota, submit their proposals, with or without subsidy requests, no later than 

September 28, 2012. The proposals should be e-mailed to: EAS@dot.gov with the title 

“Proposal to Provide Essential Air Service at Dickinson, North Dakota, Docket DOTOST-1995-697”;6

2. This docket will remain open until further order of the Department; and

3. We will serve copies of this Order on the community and the parties listed in 

Appendix D.

Persons entitled to petition the Department for review of this order under the 

Department’s Regulations, 14 CFR Part 385.50, must file such petitions within ten (10) 

days after the date of service of this order.

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

6 Questions regarding filings in response to this order may be directed to Brian Swanson at (202) 366-5392 

or brian.swanson@dot.gov.
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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

DICKINSON, NORTH DAKOTA

AND SURROUNDING COMMUNITIES
Appendix B

Page 1 of 2

Historical Enplanements1

Dickinson, North Dakota

Year Ended

Origin & 

Destination 

Passengers

Annual 

Enplanements2

Average 

Enplanements 

Per Service 

Day3 

31-Dec-99 7,393 3,697 11.8

31-Dec-00 8,188 4,094 13.0

31-Dec-01 6,979 3,490 11.1

31-Dec-02 6,151 3,076 9.8

31-Dec-03 7,908 3,954 12.6

31-Dec-04 10,226 5,113 16.3

31-Dec-05 9,784 4,892 15.6

31-Dec-06 10,840 5,420 17.3

31-Dec-07 15,248 7,624 24.4

31-Dec-08 17,797 8,899 28.3

31-Dec-09 17,808 8,904 28.4

31-Dec-10 20,670 10,335 33.0

31-Dec-11 37,170 18,585 59.4

Notes:

1. Source: Order 2005-1-9, Docket DOT-OST-1995-697 and 

US DOT Bureau of Transportation Statistics, Form T-100.

2. Origin-destination passengers divided by two.

3. Average annual enplanements divided by 313 effective annual 

service days, except for annual period ended 12/31/2000, 2004 

and 2008 (314 effective annual service days).
Appendix B

Page 2 of 2

Historical Enplanements1

Williston, North Dakota

Year 

Ended

Origin & 

Destination 

Passengers

Annual 

Enplanements2

Average 

Enplanements 

Per Service 

Day3 

31-Dec-03 7,990 3,995 12.8

31-Dec-04 10,500 5,250 16.7

31-Dec-05 10,507 5,254 16.8

31-Dec-06 12,843 6,422 20.5

31-Dec-07 16,272 8,136 26.0

31-Dec-08 23,588 11,794 37.6

31-Dec-09 22,094 11,047 35.3

31-Dec-10 31,476 15,738 50.3

31-Dec-11 51,213 25,607 81.8

Notes:

1. Source: US DOT Bureau of Transportation Statistics, Form 

T-100.

2. Origin-destination passengers divided by two.

3. Average annual enplanements divided by 313 effective 

annual service days, except for annual period ended 

12/31/2004 and 2008 (314 effective annual 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 

Department’s obligation for performance under this solicitation beyond [DATE] is contingent 

upon the availability of appropriated funds from which payment for services can be made. No 

legal liability on the part of the Department for any payment may arise for performance under 

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

funds are not made available for performance beyond [DATE], the carrier will receive notice in 

writing by the Department.

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

under this order.
Appendix D

SERVICE LIST

Air Choice One Airlines, Shane Storz Delta Air Lines, Stephen A. Hedden Pacific Aviation Group, Craig Garrick

Air Greco/Wings Air Dorado Jets Pacific Aviation Group, Ron Rye

Air Sunshine, Inc. Dorado Jets, Mark McKenna Pacific Wings, Frank Ford

Air Sunshine, Mirmohammad Adili Era Aviation, Lori Goodman Pacific Wings, Greg Kahlstorf

Air West, Inc., John Raatz Executive Airlines, Kate Soled Penn Air, Danny Seybert

Air Wisconsin, Annette Daly ExpressJet, Jon Lindlief Penn Air, Scott Bloomquist

Air Wisconsin, Jim Rankin ExpressJet, Roger Weston Pinnacle Airlines, Jennifer Gammill

Airline Associates, Bill Mishk Frontier Airlines, Daniel Shurz Pinnacle Airlines, Megan Rosia

Alaska Airlines, Jeff Cole Frontier Flying, Bob Hajducovich Pinnacle Airlines, Phil Reed

Alaska Airlines, Sandy Sinick Frontline Aviation Planemasters, Inc., John Kessler

American Airlines, Carl Nelson Gem Air, Dan Schroeder Planemasters, Inc., Paul Berliner

American Eagle, Gary Foss Gem Air, JoAnn Wolters Planemasters, Inc., Todd DeSimone

American Eagle, Robert Emrich Great Lakes Airlines, Chuck Howell RAA, Faye Balck

American Eagle, Patrick Swift Great Lakes Airlines, Doug Voss Raytheon, Mike Schiedt 

Aviation Express, Brad Shriner Homeland Security, Bill Ragan Rectrix, Aviation, Scott LaForge

Aviation Technologies/Charter Air Transport, 

Jim Gallagher Homeland Security, David Bernier Saab Group, Polly Prelinger

Bemidji Aviation, Arlen Rinkenberger Horizon Air, Jennifer Thompson Scenic, Mary Schneider

Bemidji Aviation, Cori Rude Horizon Air, Mike McQeen Scenic, Mitzi Daines

Cape Air, Andrew Bonney Horizon Air, Jeff Cole Seaborne Airlines, Shawn Lewis

Cape Air, Dan Wolf ICEPR, Luis Irizarry SeaPort Airlines, EAS Mailbox

Cape Air, J. Flaherty Intrepid Internatl Air, Rick Eyk SeaPort Airlines. Rob McKinney

Capital Aviation, Mike Colgan Island Air Charters, Linda House Shuttle America, Jerry Balsano

Chautauqua, Josh Pascoe Jet Air, Daniel Wolford Silver Airways, Darrell Richardson

Classic Aviation, Tony Henderson Kenmore Air, Tim Brooks Silver Airways, Mickey Bowman

Colgan Air, Kevin Scott McCall Aviation, Dan Scott SkyWest, Brad Rawson

Colgan Air, Mike Colgan McCall Aviation, Michelle SkyWest, Eric Christensen

CommutAir, Andy Price Mesaba, John Spanjers SkyWest, Michael Thompson

CommutAir, Joel Raymond Mesaba, Max Shemesh Sovereign Air, Bob Karns

Consultant, Jeff Hartz Michigan DOT, Matt Brinker Tailwind International, Michele 

Wilkinson

Consultant, Mike Mooney Midstar Airlines, Jeffrey Fonner Tatonduk, Robert Everts

Consultant, Robert Silverberg Republic Air Line, Greg Aretakis Tatonduk, Robert Ragar

Consultant, Ron McNeil MN Aviation, Jose Maldonado Tradewind, Eric Zipkin

Continental, Bruce Keiner Multi Aero, Darnea Transport Azumah, Joel AnabilahAzumah

Continental, Dan Weiss Multi Aero, Shane Storz Trans States, Fred Oxley

Continental, Lorry Halloway Northern Air Cargo, David Karp Trans States, Gerry Wigmore

Delta Air Lines Anthony Canitano Northern Air Cargo, Eric Van Andel Trans States, Warren Crotty

Delta Air Lines, Dan Shuman NYDC, Henok Araya United, Alicia Gabriel

Delta Air Lines, Dana Debel OST, Brian Swanson United, James Starnes

Delta Air Lines, Jeff Davidman OST, Brooke Chapman US Airways, Benjamin Slocum

Delta Air Lines, Jeff Morgan OST, Dennis DeVany US Airways, Howard Kass

Delta Air Lines, Joe Esposito OST, Kevin Adams US Airways, Jason Reisinger

Delta Air Lines, Kristal Murphy OST, Kevin Schlemmer Warbelows Air Ventures, Art 

Warbelow

Delta Air Lines, Sally Veith OST, Michael Martin DIK, Matthew Remyse

Delta Air Lines, Sascha Vanderbellen OST, Scott Faulk City of Dickinson, Dennis Johnson