Order: 2015-1-24

 Served: January 29, 2015

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 29th of January, 2015

Essential Air Service at

JOPLIN, MISSOURI

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

 Docket DOT-OST-2006-23932

 

ORDER RESELECTING CARRIER

Summary

By this Order, the Department is reselecting American Airlines (American) to provide Essential 

Air Service (EAS) at Joplin, Missouri, for an annual subsidy of $519,201, for the two-year 

period from March 1, 2015, through February 28, 2017.1 American will operate the service 

through its regional subsidiary American Eagle.

Background

By Order 2012-12-6, December 14, 2012, the Department selected American Eagle to provide 

EAS at Joplin for the two-year period from March 1, 2013, through February 28, 2015. Under 

that Order, American Eagle provides 14 weekly nonstop round trips to Dallas/Fort Worth 

International Airport (DFW) with 50-seat CRJ-200 or EMB145 regional jets, for an annual 

subsidy of $342,560. In anticipation of the expiration of that contract, the Department issued 

Order 2014-10-9 (October 15, 2014) soliciting proposals from carriers interested in providing 

EAS at Joplin for a new contract period. In response to our request, we received only one 

proposal, from American, to continue its existing level of service at Joplin.

Proposal of American

American proposes to continue its existing level of service at Joplin, consisting of two daily (14 

weekly) nonstop round trips to Dallas/Fort Worth International Airport for an annual subsidy of 

$519,201. Service would be provided by American Eagle on 50-seat CRJ200 or EMB145

regional jets, or 44-seat EMB140 regional jets. American also requested that Joplin and the 

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds.
Department agree to waive their hold-in authority and instead agree to allow it to terminate 

service upon 120 days’ notice.

Community Comments

On November 17, 2015, the Department requested community comments regarding the carrier 

selection at Joplin. In response to that request, we received a letter from Steve Stockam, Airport 

Manager at Joplin Regional Airport. The letter states that “We wholeheartedly endorse the 

proposal of American Airlines to provide American Eagle service at Joplin for the next two year 

EAS cycle.” The letter also states that the community agrees to waive hold-in authority as 

requested by American in their bid.

Decision

The decision at Joplin is straightforward. American was the only bid received and it meets all of 

the statutory criteria for selection. The subsidy requested is extremely reasonable and reflects 

the strong traffic that the community generates. We applaud American for the results of its first 

nearly four years of service at Joplin. Since American began EAS at Joplin, passenger traffic has 

more than quadrupled, resulting in a dramatic decrease in subsidy. The proposed service offers a 

large number of connecting opportunities to the national air transportation system through 

American’s Dallas/Fort Worth hub and it has received the full support of the community.

The Department shall make American’s selection contingent upon the receipt of properly 

executed certifications from American that the carrier is in compliance with the Department’s 

regulations regarding drug-free workplaces and nondiscrimination, as well as the regulations 

concerning lobbying activities.

Carrier Fitness

49 U.S.C. §§ 41737(b) and 41738 require that the Department find an air carrier fit, willing, and 

able to provide reliable service before the Department may subsidize it to provide EAS. 

American Airlines is subject to the Department’s continuing fitness requirements, and no 

information has come to the Department’s attention that would cause the Department to question 

the carrier's fitness at this time. We have contacted the Federal Aviation Administration, and it 

has raised no concerns that would negatively affect the Department’s fitness finding. The 

Department therefore concludes that the carrier remains fit to conduct the operations proposed 

here.

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

ACCORDINGLY,

1. The Department selects American Airlines to provide Essential Air Service at Joplin, 

Missouri for the two year period beginning March 1, 2015, through February 28, 2017;

2. The Department sets the final rate of compensation for American Airlines provision of 

Essential Air Service at Joplin, Missouri, as described in Appendix C;
3. The Department directs American Airlines 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 date of service 

of this Order or until the Department indicates that the records may be destroyed, whichever 

comes first. 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;

4. The Department finds that American Airlines continues to be fit, willing and able to operate 

as a certificated carrier and is capable of providing reliable Essential Air Service at Joplin, 

Missouri;

5. Under the Department’s authority in 49 U.S.C. § 40109, we will allow American to cease 

operations at Joplin on 120 days’ notice; 

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

7. The Department will serve copies of this Order on the mayor of Joplin, Missouri, the airport

manager of Joplin Regional Airport, and American Airlines.

By:

BRANDON M. BELFORD

Deputy Assistant Secretary

for Aviation and International Affairs

(SEAL)

An electronic version of this document is available 

online at http://www.regulations.gov
Appendix A

AREA MAP

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

American Airlines

Proposal to Serve Joplin
Appendix C

American Airlines

Essential Air Service to be Provided at Joplin, Missouri

Effective Period: March 1, 2015 through February 28, 2017

Scheduled Service: 14 weekly nonstop round trips to Dallas/Fort Worth International Airport

Aircraft: Regional jets: 50-seat CRJ200 or EMB145, or 44-seat EMB140.

Annual Subsidy: $519,2011

Rate per Flight: $3642

Weekly Ceiling: $10,1923

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, 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 February 14, 2015. The Government’s 

obligation for performance under this Order beyond February 14, 2015, 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 February 14, 2015, until funds are made available to the Department for 

performance. If sufficient funds are not made available for performance beyond February 14, 2015, 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 service provided in July must be filed by 

October 31st; August claims must be submitted by November 30th, and so on.

 1 See Appendix B.

2 Annual compensation of $519,201, divided by 1,427 annual departures (14 trips per week x 2 directions x 52 

weeks x 98% completion factor).

3 28 flights per week multiplied by $364 per flight.