## Order 2011

-4

- 4 Served: April 5, 2011 

# UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.
Issued b y the Department of Transportation

on the 5 th 

## of April, 2011 Essential Air Service at DODGE CITY, KANSAS GARD EN CITY, KANSAS GREAT BEND, KANSAS HAYS, KANSAS LIBERAL, KANSAS
Under 49 U.S.C. 41731 et seq
. Docket OST - 1998 -3502 Docket OST 1998 -3503 Docket OST 1998 -3496 Docket OST 1998 -3497 Docket OST 1998 -3498

ORDER REQUESTING PROPOSALS Summary By this order, the Department is requesting proposals by May 2 , 201 1 , from carriers interested in providing essential air service (EAS) at Dodge City, Garden City, Great Bend, Hays, and Liberal, Kansas , for a new two

- year period, beginning October 1, 2011 , with or without subsidy

. Background By Order 200 9

- 9

- 5 , September 11 , 2009 , the Department selected Great Lakes Aviation, Ltd, to provide subsidized EAS to Dodge City, Garden City, Great Bend, Hays, and Liberal, Kansas , through September 30 , 201 1

. Under that order, the Department authorized annual subsidy for Great Lakes, for weekly round trips, as follows: Dodge City, 12 nonstop and 12 one - stop for $1,842,749; Garden City, 30 nonstop s for $1,884,303; Great Bend, 12 one

- stop s for $1,257,617 ; Hays, 24 nonstop s for $1 ,954,327 ; and Liberal, 18 nonstop s for $1,958,570

. All of the service was to be provided to Denver under code shares with both United Airlines and Frontier Airlines with 19

- seat Beech 1900 aircraft except for Great Bend, which was to receive Kansas City

S ervice. By

Order 20 09

- 10

- 16 the Department approved an alternate service pattern allowing Dodge City and Garden City

to receive up to seven nonstop or one

stop round trips per week to Kansas City in lieu of Denver. Request for Proposals As the end of the current rate term approaches , we are hereby requesting proposals from carriers interested in providing service at any or all of the five communities , with or without subsidy, for the two

- ye ar period beginning October 1, 2011 . Carriers should file their proposals by May 2

. S taff will then docket the proposals, thereb y making them public. Shortly afterwards, we will provide a summary of the proposals to the communities and S tate

## - 2

-

and ask them to submit their final comments. We will give full considerati on to all proposals filed in a timely

manner. 1 

## 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, if necessary, solicit a new round of proposals. However, we anticipate that negotiation or rejection will remain 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 des cribe 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. We do not anticipate any change in our selection criteria, or in the general provisions governing subsidy pay ments for essential air service. 2 

## With specific respect to these five communities, we expect proposals consisting of the historical level of service or with two round trips per day (twelve per week) at each community

if 30

- seat or larger equipment is provided . We would consider proposals offering additional frequencies if the affected community were served in conjunction with another community

. We encourage proposals that meet the communities ’ 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 current service pattern if they envision other, potentially more attractive service possibilities

– different hubs, or longer terms for the contracted service

– with subsidy requirements that remain competitive. We encourage carriers to work with the communities in advance of the due date for proposals when proposals can still be adjusted so that they can craft them to best meet the communities ’ needs. In addition, carriers should be very clear as to whether a specific community ’s proposal may be considered on a stand

- alone basis, or whether it should be considered as part of a larger, inseparable package with another community. As always,

1 

### 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 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 consider f our 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.

## - 3

-

we will fully

consider the communities ’ views before making a long

-term carrier

selection decision. 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. Historical Traffic In order to assist carriers in making their traffic and revenue projections, we have included historical traffic for the communities in Appendix B

. For the ye ar ended December 31 , 2010, the most recent annual period, each community generated daily enplaned passengers based on 313 service days per year, as follows: Dodge City, 11.6; Garden City, 29.7; Hays, 26.3; Liberal, 13.7; and Great Bend, 2.3

. Other Carrier Requirements The Department is responsible for implementing various Federal statutes governing lobbying activities, drug

- free workplaces , and nondiscrimination. 3 

## Con sequently, 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. Because the Department is prohibited from paying subsidy to carriers that do not submit these documents, the selected carrier will be required to submit them in order to receive subsidy

. 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. Community Comments Civic officials and the State 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 May

2 , 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. The Department requests proposals from carriers interested in providing essential air service at Dodge City, Garden City, Great Bend, Hays, and Liberal, Kansas

. Carriers should submit their proposals, with subsidy if necessary, by May

2 , 201 1

. Proposals should be emailed to EAS@dot.gov, with the title “Proposal to Provide Essential Air Service at Dodge City, Garden City, Great Bend, Hays, and Liberal, Kansas , Dockets DOT

- OST

- 1998

- 3502, 3503, 3496, 3497, 3498 , respectively . ” Questions regarding filings may be directed to Kevin Adams at 202

- 366

- 1047 or Kevin.Adams@dot.gov ; 2

. These D ockets will remain open until further order of the Department; and

3 

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

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3 . We will serve this order on the s ervice list for this Docket. Persons entitled to petition the Department for review of this order under the Department’s 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 on the World Wide Web at http://www.regulations.gov

## Appendix A

Nonstop Great Circle Miles : To Denver, DEN Other DDC, Dodge City 292 DDC

- GCK 43 GBD, Great Bend 329 DDC

- GBD 72 GCK, Garden City 250 DDC

-HYS 84 HYS, Hays 297 DDC

- LBL 74 LBL, Liberal 279 GBD

-HYS 41 GBD

- GCK 106 Dallas , DFW LBL

- GCK 62 DDC, Dodge City 374 GBD, Great Bend 390 GCK, Garden City 404 HYS, Hays 429 LBL, Liberal 362 Kansas City, MCI DDC, Dodge City 303 GBD, Great Bend 233 GCK, Garden City 338 HYS, Hays 246 LBL, Liberal 373 Wi chita, ICT DDC, Dodge City 139 GBD, Great Bend 92 GCK, Garden City 181 HYS, Hays, 130 LBL, Liberal 199

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 Page 1 of 3 Historical Traffic per T-100 Market Report Enplaned at EAS Community Deplaned at EAS Community Origin and Destination
Kansas Kan sas Kansas Denver City Other Total Denver City Other Total Denver City Other Total Year & Quarter 

# Dodge City, Kansas (DDC) 2008 2,616 1,212 38 3,866 2,740 1,251 40 4,031 5,356 2,463 78 7,897 1 565 253 6 824 582 233 12 827 1,147 486 18 1,651 2 669 376 17 1,062 800 310 3 1,113 1,469 686 20 2,175 3 678 294 4 976 666 359 14 1,039 1,344 653 18 2,015 4 704 289 11 1,004 692 349 11 1,052 1,396 638 22 2,056 2009 2,167 1,046 34 3,247 2,249 982 34 3,265 4,416 2,028 68 6,512 1 495 221 9 725 493 229 12 734 988 450 21 1,459 2 495 333 9 837 492 273 3 768 987 606 12 1,605 3 577 281 7 865 602 267 4 873 1,179 548 11 1,738 4 600 211 9 820 662 213 15 890 1,262 424 24 1,710 2010 2,900 681 43 3,624 2,713 827 25 3,565 5,613 1,508 68 7,189 1 577 121 4 702 582 138 2 722 1,159 259 6 1,424 2 733 182 24 939 676 219 12 907 1,409 401 36 1,846 3 768 196 7 971 725 224 9 958 1,493 420 16 1,929 4 822 182 8 1,012 730 246 2 978 1,552 428 10 1,990 

# Garden City, Kansas (GCK) 2008 7,757 2,555 56 10,368 7,843 2,257 24 10,124 15,600 4,812 80 20,492 1 1,744 534 16 2,294 1,826 466 6 2,298 3,570 1,000 22 4,592 2 2,087 734 6 2,827 2,062 634 10 2,706 4,149 1,368 16 5,533 3 1,963 782 1 2,746 2,032 704 5 2,741 3,995 1,486 6 5,487 4 1,963 505 33 2,501 1,923 453 3 2,379 3,886 958 36 4,880 2009 7,222 1,740 42 9,004 7,132 1,604 19 8,755 14,354 3,344 61 17,759 1 1,636 433 14 2,083 1,766 358 8 2,132 3,402 791 22 4,215 2 1,743 453 5 2,201 1,703 404 3 2,110 3,446 857 8 4,311 3 1,860 461 8 2,329 1,808 429 5 2,242 3,668 890 13 4,571 4 1,983 393 15 2,391 1,855 413 3 2,271 3,838 806 18 4,662 2010 8,189 1,082 36 9,307 8,175 1,078 15 9,268 16,364 2,160 51 18,575 1 1,702 199 12 1,913 1,720 229 6 1,955 3,422 428 18 3,868 2 2,103 319 10 2,432 2,126 284 2 2,412 4,229 603 12 4,844 3 2,156 262 12 2,430 2,159 260 5 2,424 4,315 522 17 4,854 4 2,228 302 2 2,532 2,170 305 2 2,477 4,398 607 4 5,009Appendix B Page 2 of 3 Historical Traffic per T-100 Market Report Enplaned at EAS Community Deplaned at EAS Community Origin and Destination Kansas Kan sas Kansas Denver City Other Total Denver City Other Total Denver City Other Total Year & Quarter 

# Hays, Kansas, (HYS) 2008 5,714 2,462 19 8,195 5,908 2,153 10 8,071 11,622 4,615 29 16,266 1 1,357 581 7 1,945 1,451 525 3 1,979 2,808 1,106 10 3,924 2 1,483 704 11 2,198 1,486 581 0 2,067 2,969 1,285 11 4,265 3 1,434 607 1 2,042 1,630 582 4 2,216 3,064 1,189 5 4,258 4 1,440 570 0 2,010 1,341 465 3 1,809 2,781 1,035 3 3,819 2009 6,394 1,088 12 7,494 6,489 887 3 7,379 12,883 1,975 15 14,873 1 1,201 387 12 1,600 1,330 346 0 1,676 2,531 733 12 3,276 2 1,431 502 0 1,933 1,424 399 0 1,823 2,855 901 0 3,756 3 1,661 199 0 1,860 1,776 142 0 1,918 3,437 341 0 3,778 4 2,101 0 0 2,101 1,959 0 3 1,962 4,060 0 3 4,063 2010 8,214 0 4 8,218 8,155 0 7 8,162 16,369 0 11 16,380 1 1,750 0 0 1,750 1,826 0 1,826 3,576 0 0 3,576 2 2,184 0 4 2,188 2,035 0 4 2,039 4,219 0 8 4,227 3 2,034 0 0 2,034 2,209 0 1 2,210 4,243 0 1 4,244 4 2,246 0 0 2,246 2,085 0 2 2,087 4,331 0 2 4,333 

# Liberal, Kansas (LBL) 2008 3,685 26 3,711 3,486 10 41 3,537 7,171 10 67 7,248 1 808 7 815 788 0 4 792 1,596 0 11 1,607 2 955 4 959 904 10 5 919 1,859 10 9 1,878 3 958 3 961 873 0 4 877 1,831 0 7 1,838 4 964 12 976 921 0 28 949 1,885 0 40 1,925 2009 3,472 25 3,497 3,480 0 12 3,492 6,952 0 37 6,989 1 792 21 813 762 0 12 774 1,554 0 33 1,587 2 847 0 847 874 0 0 874 1,721 0 0 1,721 3 887 2 889 895 0 895 1,782 0 2 1,784 4 946 2 948 949 0 949 1,895 0 2 1,897 2010 4,267 29 4,296 4,226 0 12 4,238 8,493 0 41 8,534 1 899 2 901 912 0 10 922 1,811 0 12 1,823 2 1,106 14 1,120 1,070 0 1,070 2,176 0 14 2,190 3 1,063 13 1,076 1,114 0 2 1,116 2,177 0 15 2,192 4 1,199 0 1,199 1,130 0 1,130 2,329 0 0 2,329Appendix B Page 3 of 3
Historical Traffic per T-100 Market Report Enplaned at EAS Community Deplaned at EAS Community Origin and Destination Kansas Kan sas Kansas Denver City Other Total Denver City Other Total Denver City Other Total Year & Quarter 

# Great Bend, Kansas (GBD) 2008 402 582 4 988 407 583 49 1,039 809 1,165 53 2,027 1 92 137 2 231 110 175 16 301 202 312 18 532 2 128 179 0 307 114 172 15 301 242 351 15 608 3 86 167 0 253 65 155 2 222 151 322 2 475 4 96 99 2 197 118 81 16 215 214 180 18 412 2009 178 360 2 540 181 390 14 585 359 750 16 1,125 1 91 73 1 165 84 69 2 155 175 142 3 320 2 69 101 1 171 77 93 6 176 146 194 7 347 3 18 84 0 102 20 107 6 133 38 191 6 235 4 0 102 0 102 0 121 0 121 0 223 0 223 2010 611 101 7 719 613 86 35 734 1,224 187 42 1,453 1 0 81 0 81 0 69 0 69 0 150 0 150 2 137 20 4 161 141 17 23 181 278 37 27 342 3 218 0 1 219 246 0 6 252 464 0 7 471 4 256 0 2 258 226 0 6 232 482 0 8 490

## 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 fli ght 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 p eriod, 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 communities

. If the Department unilaterally, either partially or completely, terminates or reduces pay ments 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 pay ments 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 b y the Department and carrier do not constitute a total or partial reduction or cessation of pay ment. 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 c ontrovert 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 appropri ated funds from which pay ment for services can be made. No legal liability on the part of the Government for any pay ment 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 b y the Department. All claims for pay

ment must be submitted within 60 days of the last day of service provided under this ordert