Or der: 20 1 5

- 1

- 24

Served : January 29 , 201 5



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 29 th of January , 201 5

Essential Air Service at

JOPLIN

, MISSOURI

Under 49 U.S.C. 41731 et seq

. Docket DOT

- OST

- 200 6

- 23932

ORDER RE SELECTING CARRIER

Summary By this O rder

, the Department is re s electing American Airlines (American ) to provide E ssential

Air S ervice (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, 201 5

. Under that Order, American Eagle provides 14 weekly n onstop round trips to Dallas/Fort Worth International Airport (DFW) with 50

- seat CRJ

- 200 or EMB 145 regional jets, for an annual subsidy of $ 342,560

. In anticipation of the expiration of that contract, the Department issued

Order 201 4

- 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 o nly 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

- s eat 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 o n 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, 201 5

, the Department requested co mmunity co mment s 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 t he 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 re quested 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 n umber of connecting opportunities to the national air transportation system through

American ’s Dallas/Fort Worth h ub 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 sub j ect 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 i t has raised no concerns that would negatively affect the Department’s fitness finding. The Department therefore conclude s that the carrier remain s fit to conduct the operations proposed

here.

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

ACCORDINGLY,

1. The Department selec ts American Airlines to provide E ssential A ir S ervice at Joplin

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

2

. The Department set s the final rate of compensation for American Airlines provision of

E ssential A ir S ervice at Joplin

, Missouri

, as described in Appendix C ;3

. The Department direct s 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 Departmen t 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 sup ported under the terms of this O rder;

4

. The Department find s that American Airlines continue s to be fit, willing and able to operate

as a certificated carrier and is capable of providing reliable E ssential A ir S ervice at Joplin

, M issouri ;

5. Under the Department’s authority in 49 U

. S

. C

. § 40109, w e will allow American to ce ase operations at Joplin on 120 days ’ notice;

6

. Th is docke t will remain open until further O rder of the Department; and

7

. The Department will serve copies of this O rd er 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.govAppendix A



## AREA MAP

This map is provided by Sabre ® AirVision TM Profit Essentials and is being used with express permission of the copyright holder,

Sabre Airline Solutions®.Appendix B

American Airlines Proposal to S erve Jopli nAppendix C

American Airlines

Essential Air Service to be Provided at Joplin

, Missouri

Effective Period : March 1, 201 5 through February 28, 2017

Scheduled Service : 1 4 weekly nonstop round trips t o Dallas/Fort Worth International Airport

Aircraft : Regional jets: 50

- seat CRJ 200 or EMB 145 , or 44

- seat EMB140. Annual Subsidy: $ 519,201 1
Rate per Flight: $ 364 2
Weekly Ceilin g : $ 10,192 3

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 sign ificant 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 t hat 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 complete ly , 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 wi thout 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 paym ent.

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 th e foregoing paragraph.

Funds may not be available for perfo rmance 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 perform ance under this Order beyond February 14, 2015 , until funds are made available to the Department for performance. If sufficient funds are not m ade 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 1,4 27 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.