Order 2013-8-6

Served: August 19, 2013

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 19th of August, 2013

Essential Air Service at

KAMUELA, HAWAII

Under 49 U.S.C. 41731 et seq. DOCKET DOT-OST-1997-2833

ORDER ADJUSTING THE STARTING DATE OF SERVICE

Order 2013-7-3, July 2, 2013, selected Mokulele Flight Services, Inc, d/b/a Mokulele Airlines, to 

provide Essential Air Service (EAS) to Kamuela, Hawaii, effective October 1, 2013. On July 17, 

2013, Mokulele indicated that it intended to begin service on September 21, 2013, and has begun 

selling tickets for service on that date. We will therefore adjust Appendix B of this Order to 

reflect that fact. 

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

ACCORDINGLY,

1. We adjust the starting date for the inauguration of Essential Air Service by Mokulele Flight 

Services, Inc, d/b/a Mokulele Airlines, to September 21, 2013, from the date of October 1, 2013, 

as specified in Order 2013-7-3;

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

3. We will serve copies of this Order on the civic officials of Kamuela, Hawaii, Pacific Wings, 

LLC, Schuman Aviation Company, Ltd, d/b/a Makani Kai Air Charters, and on Mokulele Flight 

Services, Inc., d/b/a Mokulele Airlines.

By:

Susan L. Kurland

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available on the World Wide Web at

http://www.regulations.gov
Appendix A

Nonstop Great Circle Miles (Statute) from Kamuela

Kona (KOA) 30

Hilo (ITO) 45

Hana (HNM) 59

Kahului (OGG) 79

Honolulu (HNL) 172
Appendix B

Mokulele, Inc., Essential Air Service to be Provided to 

Kamuela, Hawaii, Docket 1997-2833

Effective Period: September 21, 2013, through September 30, 2017.1

Aircraft: Cessna 208, Caravan, Single Engine Turbo-prop

Scheduled Service: Twelve nonstop round trips per week to either Honolulu (HNL) or Kahului (OGG).2 

Annual Annual Subsidy/ Weekly

Subsidy Flights 3 Flight4Ceiling 5

1st year $494,291 1,223 $404 $9,696

2nd year $434,411 1,223 $355 $8,520

3rd year $417,310 1,223 $341 $8,184

4th year $412,389 1,223 $337 $8,088

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 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 provided in July must be filed by October 31; August claims must be 

submitted by November 30, and so on.

 

1 The first year will run from September 21, 2013, through September 30, 2014, so that the rate will change on the 

first day of the month, and the carrier will have a full twelve months of service at the initial rate.

2 As discussed in Order 2013-7-3, the carrier has the flexibility to serve either Kahului or Honolulu with two round 

trips. However, the carrier would need community support and DOT approval to provide one nonstop round trip a 

day to each hub.

.

3 12 round trips per week x 2 directions x 52 weeks x 98% completion = 1,223.

4 Annual subsidy ÷ annual flights.

5 12 round trips per week x 2 directions x subsidy per flight.