Order 2010-5-33

Served: May 28, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 28th day of May, 2010

Essential Air Service at

ATHENS, GEORGIA

MACON, GEORGIA

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

DOCKET DOT-OST-2002-11348

DOCKET DOT-OST-2007-28671

ORDER REQUESTING PROPOSALS

Summary

By this order, the Department is requesting proposals, by June 21, from carriers interested in 

providing essential air service (EAS) at Athens and Macon, Georgia, for a new two-year period

beginning October 1, 2010, with or without subsidy. (See Appendix A for map.)

Background

By Order 2008-5-43, May 29, 2008, the Department selected Pacific Wings, L.L.C. d/b/a 

Georgia Skies (Georgia Skies), to provide EAS at Athens and Macon for the two-year period 

through September 30, 2010. That order established an annual subsidy rate of $1,051,386 at 

Athens for service consisting of 12 nonstop round trips per week, and $1,386,306 at Macon for 

26 nonstop round trips per week. All service was operated nonstop to Atlanta with 9-seat 

Cessna C-208B Grand Caravan aircraft.

Special discussion concerning Macon

Based on available data for 2009, there were 2,987 passengers enplaned and deplaned at Macon. 

The annual subsidy amount for Macon is $1,386,306, resulting in a subsidy per passenger of

$464. 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 
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the nearest large or medium hub airport.1 Macon is 82 miles from Atlanta-Hartsfield 

International Airport.

Rather than terminate Macon’s service eligibility at this stage, the Department will solicit 

proposals for EAS, but will evaluate all proposals submitted before committing to a two-year 

contract or making a final determination on Macon’s continuing eligibility. During the 30-day 

window for proposals, we expect the community to work aggressively with all potential

applicants to mitigate some of the risks that the carriers may face in an attempt to lower subsidy 

levels.

Request for Proposals

As the end of the current rate term approaches, in order to provide sufficient time to complete the 

carrier-selection process before the current contract expires, we are here requesting proposals 

from carriers interested in providing service at Athens and Macon, with or without subsidy 

support, for the two-year period beginning October 1, 2010. Carriers should file their proposals 

no later than June 21. After that date, 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 proposals to community 

officials and ask them to submit their final comments. We will give full consideration to all 

proposals filed in a timely manner.2

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

proposals will also be their final and only proposals. 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 community and the Department.3

 1 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.

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

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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In order to assist carriers in developing traffic and revenue projections for their proposals, we 

have summarized historical passengers in Appendix B. In 2009, Athens generated 9,214 O&D 

passengers, averaging 14.7 enplanements a day, a significant increase from the 6,550 passengers 

it generated in 2008.

Macon, however, has experienced a dramatic drop in passenger levels over the last several years. 

During 2009, it generated a total of 2,987 O&D passengers, drastically lower than the previous 

year during which there were 19,460 enplanements, or an average of 31 daily enplanements.

As stated above, we will evaluate all proposals submitted before committing to a two-year 

contract or making a final determination on Macon’s continuing eligibility.

Proposals should provide sufficient capacity to accommodate historical levels of traffic. In order 

to assist carriers in developing traffic and revenue projections for their proposals, we have 

summarized historical passengers in Appendix B. Specifically for these communities, we expect

proposals that are consistent with what the communities currently receive (three or four daily 

round trips with nine-seat aircraft). We note that EAS at the communities calls for service with 

15-seat aircraft. However, during the current two-year contract, the communities approved the 

service with nine-seat aircraft. For carriers proposing 15-seat or larger aircraft, we expect 

proposals for two round trips a day (12 per week). Service should be to Atlanta, Charlotte, 

Nashville or any hub that offers access to the national air transportation system. Carriers are also 

welcome to propose more than one option, if they choose; they need not limit themselves to 

those requirements if they envision other, potentially more attractive service possibilities --

different hubs, for example -- with subsidy requirements that remain competitive. 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 communities and meets the operational

needs of the airline interested in submitting a proposal.

We encourage proposals that meet these requirements in an efficient manner. Carriers are also 

welcome to propose more than one option, if they choose; they need not limit themselves to 

those requirements if they envision other, potentially more attractive service possibilities --

different hubs, for example -- with subsidy requirements that remain competitive.

New Filing Procedures

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 Regulations.gov, each page 

should be formatted to be viewed online.
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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 to support 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. All carriers that plan to 

submit proposals involving subsidy should submit the required certifications along with their 

proposals. Interested carriers requiring more detailed information regarding these requirements, 

as well as copies of the certifications, should contact the Office of Aviation Analysis at 

(202) 366-5903. The Department is prohibited from paying subsidy to carriers that do not 

submit these documents.5

Community and State Comments

Civic officials are welcome to submit comments on the proposals at any time. 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 June 21, the due date for carrier 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 Athens and/or Macon, 

Georgia, submit their proposals, with or without subsidy requests, no later than June 21, 2010. 

The proposals should be emailed to: EAS@dot.gov with the title “Proposal to Provide Essential 

Air Service at Athens, Georgia, Docket DOT-OST-2002-11348” and/or “Proposal to Provide 

Essential Air Service at Macon, Georgia, Docket DOT-OST-2007-28671”;6

2. Dockets DOT-OST-2002-11348 and DOT-OST-2007-28671 will remain open until further 

order of the Department; and

3. The Department will serve a copy of this order on the mayors and airport managers of Athens

and Macon, Georgia, Pacific Wings, L.L.C. d/b/a Georgia Skies, and the parties listed in 

Appendix D.

 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 (nonprocurement) and government-wide requirements for drug-free workplace (grants).

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 should be directed to Renée Williams at 202-366-1058, or via 

email at renee.williams@dot.gov.
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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 online at

www.regulations.gov
Appendix A

Area Map
Appendix B

Historical O&D Traffic and Average Daily Enplanements1

Athens, GA

Average Daily

O&D Traffic Enplanements2

1Q09 2,280 14.8

2Q09 2,180 14.0

3Q09 2,058 13.0

4Q09 2,696 17.1

2009 Totals: 9,214 14.7

1Q08 3,339 21.4

2Q08 1,383 8.9

3Q08 113 0.7

4Q08 1,715 10.9

2008 Totals: 6,550 10.4

Macon, GA

Average Daily

O&D Traffic Enplanements2

1Q09 721 4.7

2Q09 821 5.3

3Q09 655 4.1

4Q09 790 5.0

2009 Totals: 2,987 4.8

1Q08 4,857 31.1

2Q08 6,554 42.0

3Q08 5,852 37.0

4Q08 2,197 13.9

2008 Totals: 19,460 31.0

________________________________

1 Source: Bureau of Transportation Statistics; TranStats Form 41, Schedule T-100. 2 Daily averages are based on one-half of the O&D passengers, divided by 313 service days (314 during 

leap years).
Appendix C

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 order beyond September 30, 2010. 

The Government's obligation for performance under this order beyond September 30, 2010, 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 September 30, 2010, until funds are made available to the 

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

September 30, 2010, 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

Scheduled Air Carriers, Contiguous US and Puerto Rico

Air Sunshine, Inc. Jet Air, Daniel Wolford

Air Sunshine, Mirmohammad Adili Kenmore Air, Tim Brooks 

Air West, Inc., John Raatz McCall Aviation and Salmon Air, Dan Scott

Air Wisconsin, Annette Daly McCall Aviation, Michelle

Airline Associates, Bill Mishk Mesa Air, Jonathan Ornstein

Alaska Airlines, Jeff Cole Mesa Air, Michael Lotz 

Alaska Airlines, Sandy Sinick Mesa Air, Mike Holcomb

Allegiant Air, Robert Ashscroft Mesaba, John Spanjers 

American Airlines, Carl Nelson Mesaba, Max Shemesh

American Eagle, Jeffrey Hartz Midstar Airlines, Jeffrey Fonner

Atlantic Southeast, Jon Lindlief Midwest Airlines, Anthony Intravia 

Atlantic Southeast, Roger Weston Midwest Airlines, Greg Aretakis

Bemidji Aviation, Cori Rude Midwest Airlines, J.C. Augustson

Bemidji Aviation, Arlen Rinkenberger MN Aviation, Jose Maldonado 

Cape Air, Andrew Bonney Multi Aero, Darnea

Cape Air, Dan Wolf Multi Aero, Shane Storz

Cape Air, J.Flaherty Northwest, Tim McDonald 

Classic Aviation, Tony Henderson NYDC, Henok Araya

Colgan Air, Mike Colgan OST, Brian Swanson

CommutAir, Andy Price OST, Dennis DeVany

CommutAir, Joel Raymond OST, Kevin Adams

Consultant, Robert Silverberg OST, Kevin Schlemmer

Continental, Bruce Keiner OST, Michael Martin 

Continental, Dan Weiss OST, Renee Williams

Continental, Lorry Halloway Pacific Wings, Frank Ford

Delta, Amy Martin Pacific Wings, Greg Kahlstorf

Delta, Dan Shuman PenAir, Danny Seybert

Delta, Jeff Morgan PenAir, Scott Bloomquist

Delta, Joe Esposito Pinnacle Airlines, Joe Williams 

Delta, Karen Zachary Pinnacle Airlines, Phil Reed

Delta, Sascha Vanderbellen Public Charters, Jim Gallagher

Dorato Jets Scenic, Mary Schneider

Dorato Jets, Mark McKenna Scenic, Mitzi Daines

Era Aviation, Mike Lenorman Seaborne Airlines, Wayne D'Amico

Executive Airlines, Kate Soled SeaPort Airlines, Jim Day 

Frontier Flying, Bob Hajducovich SeaPort Airlines, Rob McKinney

Gem Air, Dan Schroeder Shuttle America, Jerry Balsano 

Gem Air, JoAnn Wolters SkyWest, Eric Christensen

Great Lakes, Chuck Howell SkyWest, Michael Thompson

Great Lakes, Doug Voss Sovereign Air, Bob Karns

Great Lakes, Greg Stephens Sovereign Air, Lois R. Barton

Gulfstream, Dave Hackett Tradewind, Eric Zipkin 

Gulfstream, Mickey Bowman TransStates, Fred Oxley

Gulfstream, T. Cooper Transtates, Gerry Wigmore 

Homeland Security, Bill Ragan United, Alicia Gabriel

Homeland Security, David Bernier United, James Starnes

Homeland Security, Randy Webb US Airways, Benjamin Slocum

Horizon Airlines, Dan Russo US Airways, Howard Kass

Horizon Airlines, Jennifer Thompson US Airways, Jason Reisinger 

Horizon, Jeff Cole Warbelows Air Ventures, Art Warbelow

ICEPR, Luis Irizarry Wings Air (Air Greco), Aaron Goerlich

Island Air Charters, Linda House