Order : 2010-3- 3 Served : Marc h3 , 201 0


### .ji^^^b

. UNITE D STATE S O FAMERIC A

DEPARTMEN T O FTRANSPORTATIO N OFFIC E O FTH E SECRETAR Y ^^^•^ ^ WASHINGTON , D.C

.

Issue db y th e Departmen t of Transportatio n o n th e 3" * da y of

March , 201 0

Essentia l Ai r

Servic e at PRESQU E ISLE , MAIN E
unde r 4 9 U.S.C

. 4173 1 e t

seq
. Docke t DOT-OST-2000-801 2



## ORDER REQUESTING PROPOSAL S

Summary B y thi s order , th e Departmen t i s requestin g proposal s fro mcarrier s intereste di n providin g essentia l ai r

servic e (EAS ) at

Presqu e Isle , Maine , fo r

th e two-year

perio dbeginnin g Jun e 1,2010 , wit

ho r withou t subsidy

. Proposal s ar e du e b y Marc h26 , 2010

. (Se e Appendi x A for

amap. ) 

### Backgroun d B y Orde r 2008-2-53 , th e Departmen t selecte dColga n Au : Inc. , operatin g a s U S Airway s Expres s (Colgan) , t o provid e th e communit y 1 9 weekl y nonsto p roun dtrip s t o Boston , at

an annua l subsid y o f

$2,643,588 , fo r

th e two-year

perio dfro mJun e 1 , 2008 , throug hMa y 31 , 2010

. 

### Reques t fo rProposal s A s th e en do f

th e curren t

contrac t approache s o n Ma y 31 , w e ar e her e requestin g proposal s for ane w two-year

perio dbeginnin g Jun e 1

. Intereste dcarrier s shoul dprepar e thei r proposal s withevery expectatio n tha t thei r initia l proposal s wil l represen t Xhex x final an d onl y proposals

. However , w e retai n th e discretio n t o negotiat e proposal s withcarrier s whe n w e dee mi t

desirable ; i n suc hcases , o f course , w e wil l giv e al l applicant s th e sam e opportunity

. W e als o retai n th e discretio n t o rejec t outrigh t al l unreasonabl e o r

unrealisti c

### - 2

proposal s an dresolici t

ane w roun do f

proposals

. However , w e anticipat e tha t negotiatio n o r rejectio n wil l remai n onl y occasiona l exception s t o th e rule

. W e ar e her e providin g intereste dcarrier s withsom e basi c informatio n t o assis t the ma s the y prepar e thei r

proposals , bu t

w e wil l not

prescrib e aprecis e format for then : preparation

. W e expec t

proposal s t o adequatel y describ e th e servic e bein g propose dan d th e annua l amoun t

o f subsid y bein g requested

. Applicant s ca n mak e thei r ow n judgment s a s t o th e leve l of

detai l the y wis ht o present ; however , the y migh t wan t t o includ e propose d schedules , a s wel l a s supportin g dat afor thei r subsid y requests , suc ha s projecte dbloc k hours , revenues , an dexpenses
. W e strongl y encourag e clear , well-documente dproposal s that wil l facilitat e thei r

evaluatio n b y th e conmiunit y an dth e Department. '
Withspecifi c respec t

t o Presqu e Isle , w e expec t proposal s consistin g o f

tw o dail y nonsto p roim dtrip s (1 4 roun dtrip s aweek ) usin g 34-sea t o r large r aircraft , o r

four dail y roun dtrip s (2 4 roun dtrip s aweek ) usin g 19-seat aircraf t t o Boston' s Loga n Internationa l Airport o r anothe r suitabl e hu b airport

withairlin e cormection s t o th e nationa l ai r transportatio n system

. W e encourag e proposal s tha t mee t thos e requirement s i n an efficien t manner
. Carrier s ar e als o welcom e t o propos e mor e tha n on e servic e option , i f the y choose ; the y nee dnot limi t themselve s t o thos e requirement s i f the y envisio n other , potentiall y mor e attractiv e servic e possibilitie s ~ differen t

hubs , for exampl e ~ withsubsid y requirement s tha t remai n competitive

. 

### NewFilin g Procedure s Carrie r proposal s shoul db e submitte dt o th e Departmen t withal l material s merge dint o a singl e document

. I n addition , becaus e th e documen t wil l b e publishe do n Regulations.gov , eac hpag e shoul db e formatte dt o b e viewe donline

. 

### Historica l Traffi c I n orde r t o assis t prospectiv e applicant s i n makin g traffi c an drevenu e forecasts , w e hav e include dhistorica l passenge r dat afro m200 5 throug hOctobe r 31 , 2009 , i n Appendi x B

.

' I n selecting acarrie

r t o provide subsidizedessentia l ai r service , 4 9 U.S.C

. 41733(c)(1 ) direct s us t o conside r fou r factors : (1 ) scheduledservic e reliability ; (2 ) contractua l an dmarketing arrangements wit halarge r carrie r t o ensur e servic e beyon

dthe hub ; (3 ) interline arrangement s tha t the applican

t ha s mad e wit halarge r carrie r a t th e hub ; an d(4 ) communit

y views , giving substantia

l weigh t t o the view s o

f the electedofficial s representing the users
. I

n addition , th

e ConsolidatedAppropriation s Act , 2008 , Publi c La w 110-161 , provide s tha

t whe n selecting acarrie

r t o provide EAS , the Departmen t ma y conside r th e relativ e subsid

y requirements , thu s codifyin

g afacto r tha t w e hav e consideredsinc e the inception o f th e program
. Interested carrier s shoul

dals o b e awar

e tha t ou r genera l provision s governing essentia l ai r servic e wil

l b e includedi

n th e selection orde

r a s par t o f ou r authorizatio n o

f subsid y fo r th e selectedservice

. Appendi x C o f thi s orde r contain s thos e genera

l provisions

.

### - 3

Othe rCarrie rRequirement s Th e Departmen t

i s responsibl e for

implementin g variou s Federa l statute s governin g lobbyin g activities , drug-fre e workplaces , an dnondiscrimination

. Consequently , al l carrier s receivin g Federa l subsid y fo r essentia l au : servic e mus t certif y tha t the y ar e i n complianc e withDepartmen t regulation s regardin g drug-fre e workplace s an d nondiscrimination , an dthos e carrier s whos e subsidie s excee d$100,00 0 ove r th e lif e o f th e rat e termmus t

als o certif

y tha t the y ar e i n complianc e withth e regulation s governin g lobbyin g activities

. Becaus e th e Departmen t i s prohibite dfro mpayin g subsid y t o carrier s tha t d o not submi t thes e documents , al l carrier s tha t pla n t o submi t

proposal s involvin g subsid y shoul db e awar e tha t th e selecte dcarrie r

wil l b e expecte dt o complet e th e require d certifications

. Intereste dcarrier s requirin g mor e detaile dinformatio n regardin g thes e requirement s a s wel l a s copies o f th e certification s shoul dcontac t th e Offic e o f

Aviatio n Analysi s a

t (202 ) 366-5903. ^


### Communit yan d Stat e Comment s Th e communit y an dth e stat e ar e welcom e t o submi t comment s at

an y time

. W e encourag e prospectiv e applicant s t o contac t th e commimit y befor e the y submi t thei r proposal s i n orde r t o tailo r the mt o th e community' s needs

. A s note dearlier , w e wil l provid e acop y of th e proposal s t o th e civi c partie s an das k the mt o submi t

thei r final comment s shortl y after Apri l 2 , th e deadlin e fo r

filin g carrie r

proposals

. Thi s orde r

i s issue dunde r

authorit y delegate di n 4 9 CF R1.56a(f ) an dre-delegate dt o th e Director , Offic e o f

Aviatio n Analysis

. 

### ACCORDINGLY , 1

. W e reques t

that carrier s intereste di n providin g essentia l ai r servic e at

Presqu e Isle , Maine , submi t

thei r proposals , witho r

withou t subsid y requests , n o late r tha n Marc h26 , 2010

. Th e proposal s shoul db e e-maile dt o EAS@dot.gov , wit hth e title : "Proposa l t o Provid e Essentia l Ai r Servic e a

t Presqu e Isle , Maine , Docke t OST-2000

- 8012"; *
2

. Thi s docke t

wil l remai n ope n unti l further orde r o f th e Department ; an d

2 Th e regulation s applicable t

o thes e area s are : (1 ) 4 9 CF RPar t 2 0 ~ Ne w restriction s o

n lobbymg ; (2 ) 4 9 CF RPar t 2 1 - Nondiscrimination in federally-assistedprogram s o f the Departmen

t o f Transportation -

- Effectuatio

n o f titl e VI o f the Civil Right s Ac

t o f 1964 ; 4 9 CF

RPar t 27 - Nondiscrimination o

n the basi s o

f disabilit y i n program s an

dactivitie s receiving or

benefiting fro

mFedera l financial assistance ; an

d 1 4 CF RPar t 38 2 - Nondiscrimination on the basi s o f disabilit y i n ai r travel ; an d(3 ) 4 9 CF

RPar t 29 - Government-wid

e debarmen

t an dsuspension (non-procurement ) an dgovernment-wid

e requirements fo

r drug-fre e workplac e (grants)

. 3 Th e certification s ar

e als o availabl e o

n the WorldWide We

b a t http://ostpxweb.dot.gov/aviation/index.html

. • * Question s regarding filings i n respons e t

o thi s orde r ma y b e directedt

o Michae l Marti n a t (202 ) 366-6494 , an dproposal s shouldb e emailedt o EAS@dot.gov , n

o late r tha n Marc h26 , 2010

.- 4

3

. W e wil l serv e copies o f thi s orde r

o n th e Mayo r

o f Presqu e Isle , th e airport

manage r o f th e Presqu e Isl e Airport , th e Governo r o f Massachusetts , Colga n Ai r Inc. , an dth e carrier s liste di n Appendi x D

.

Person s entitle dt o petitio n th e Departmen t for revie w o f

thi s orde r

unde r th e Department' s Regulations , 1 4 CF RPart 385.50 , mus t

fil e suc hpetition s withi n te n (10 ) day s afte r th e dat e o f servic e o f

thi s order

. Thi s orde r

wil l b e effectiv e immediately , an dth e filin g o f apetitio n for

revie w shal l no t preclud e it s effectiveness

. By :

TOD D M

. HOMA N Directo r Offic e o f Aviatio n Analysi s (SEAL )

An electroni c versio n o f

thi s documen t

i s availabl e o n th e Worl dWid e We b a t http://www

. resulations

. so v

### Appendix A


# ARE A MA P

Presqu e Isl e

### Historica l Passenge rTraffi ca t Presqu e Isle , Main e ^
Enplanement s a t Presqu e Isl e

1 Q 2 Q 3 Q 4 Q Total s 2005

3,78 6 3,93 7 4,81 5 3,52 9 16,06 7 200 6

3,87 8 3,90 3 4,64 1 3.84 7 16,26 9 200 7

3,77 4 4,05 8 4,32 4 3,43 3 15,58 9 200 8

3,23 9 3,02 6 3,72 1 3,23 8 13,22 4 Yea r

endin a 09/30/200 9 2,82 9 3,23 6 3,94 4

... . 13,24 7

Deplanement s a t Presqu e Isl e

1 Q 2 Q 3 Q 4 Q Total s 2005

3.65 8 4,45 6 4,58 9 3.45 9 16,16 2 200 6

3,62 7 4,40 6 4,39 4 3.68 4 16,11 1 200 7

3,71 4 4,35 5 4,23 5 3.26 4 15,56 8 200 8

3,11 6 3,37 1 3,65 6 3.12 0 13,26 3 Yea r

endin a 09/30/200 9 2,78 6 3,58 1 3,94 2

... . 13,42 9 Appendi x B

Tota l Origi n an d Destinatio n

Passenger s

1 0 2 0 3 0 4 0 Total s 2005

7,44 4 8,39 3 9,40 4 6.98 8 32,22 9 200 6

7,50 5 8,30 9 9,03 5 7.53 1 200 7

7,48 8 8,41 3 8,55 9 6.69 7 200 8

6,35 5 6,39 7 7,37 7 6.35 8 32,22 9 32,38 0 31,15 7 26,48 7 Yea r endin a 09/30/200 9 5,61 5 6,81 7 7,88 6 26,67 6

' Source : Departmen

t o f Transportation , Burea

u o f Transportation Statistics , T-lO O Marke t data

.Appendi x C

Exampl e o f

Genera l Term s an dCondition s fo r Essentia l Ai r

Servic e Th e carrie r

understand s that

i t may forfei t

it s compensatio n fo r

an y flight s that

i t doe s no t operat e i n conformanc e withth e term s an dstipulation s of th e rat e order , includin g th e servic e plan s outline di n th e orde r

an dan y othe r

significan t

element s o f

th e require dservice , withou t prio r approval

. Th e carrie r

understand s tha t

an aircraf

t take-of f an dlandin g at

it s schedule d destinatio n constitute s acomplete dflight ; absen t a n explanatio n supportin g subsid y eligibilit y fo r aflight tha t ha s not bee n completed , suc ha s certai n weathe r cancellations , onl y complete d flights ar e considere deligibl e fo r subsidy

. I n addition , i f

th e carrie r

doe s not schedul e o r

operat e it s flights i n full conformanc e withth e orde r for asignifican t

period , it

ma y jeopardiz e it s entir e subsid y clai mfo r

th e perio di n question

. I f th e carrie r

contemplate s an y suc hchange s beyon d th e scop e o f

th e orde r durin g th e applicabl e perio do f thes e rates , i t

mus t firs t notif y th e Offic e o f Aviatio n Analysi s i n writin g an dreceiv e writte n approva l fro mth e Departmen t t o b e ensure do f full compensation

. Shoul dcircumstance s warrant , th e Departmen t ma y locat e an dselec t

a replacemen t

carrie r t o provid e servic e o n thes e routes

. Th e carrie r mus t complet e al l flights tha t ca n b e safel y operated ; flights tha t overfl y point s fo r

lac k o f traffi c wil l not

b e compensated

. I n determinin g whethe r

subsid y paymen t

fo r adeviatin g flight

shoul db e adjuste do r

disallowed , th e Departmen t

wil l conside r

th e exten t

t o whic hth e goal s o f

th e progra mar e me t

an dth e exten t

of acces s t o th e nationa l ai r

transportatio n syste mprovide dt o th e community

. I f th e Departmen t

unilaterally , eithe r

partiall y o r

completely , terminate s o r reduce s payment s for servic e o r change s servic e requirement s at aspecifi c locatio n provide dfo r unde r thi s order , then , at th e en do f

th e perio dfo r

whic hth e Departmen t

doe s mak e payment s i n th e stipulate damount s o r a t th e stipulate dservic e levels , th e carrie r may ceas e t o provid e servic e t o tha t specifi c locatio n withou t

regar dt o an y requiremen t for notic e o f suc hcessation

. Thos e adjustment s i n th e level s o f

subsid y and/o r

servic e tha t

ar e mutuall y agree dt o i n writin g b y th e Departmen t an d carrie r d o no t constitut e atota l o r

partia l reductio n o r

cessatio n of

payment

. Fund s ar e not

currentl y availabl e fo r

performanc e unde r

thi s solicitatio n beyon d[DATE]

. Th e Department' s obligatio n for performanc e unde r

thi s solicitatio n beyon d[DATE] , i s contingen t upo n th e availabilit y o f

appropriate dfund s fro mwhic hpaymen t for service s can b e made

. N o lega l liabilit y o n th e part

o f th e Departmen t

for an y paymen t

ma y aris e for

performanc e unde r thi s orde r beyon d[DATE] , unti l fund s ar e mad e availabl e t o th e Departmen t for performance

. I

f fund s ar e not

mad e availabl e for

performanc e beyon d[DATE] , th e carrie r wil l receiv e notic e i n writin g b y th e Department

. Subsid y contract s ar e subjec t to , an dincorporat e b y reference , relevan t statute s an dDepartmen t regulations , a s the y may b e amende dfro mtim e t o time

. However , an y suc hstatutes , regulations , o r amendment s theret o shal l not operat e t o controver t

th e foregoin g paragraph

. Al l claim s fo r

paymen t mus t b e submitte dwithi n 6 0 day s o f th e las t da y o f servic e provide d unde r thi s order

.Appendi x D

Schedule dAi r

Carriers

. Contiguou s U S an dPuert o Ric o Ai r Greco , d/b/ aWing s Air , Aaro n Goerlic h Ai r Greco , d/b/ aWing s Air , Charle s Mint z Ai r Greco , d/b/ aWing s Air , Rober t Rupar d Ai r Sunshine , Mirmohamma dAdil i Ai r Wisconsin , Barbar aJone s Alask aAirlines , Jef

f Col e Alask aAirlines , Sand y Sinic k Allegian t Air , Rober t

Ashscrof t Allianc e Air , Pau l Berline r America n Airlines , Carl Nelso n America n Eagle , Jef

f Hart z Bemidj i Aviation , Arle n Rinkenberge r Bemidj i Aviation , Cori Rud e Cap e Air , Andre w Bonne y Cap e Air , Da n Wol f Cap e Air , J

. Flahert y Caribbea n Su n Airlines , Joh n Ruper t Colga n Air , Mik e Colga n Colga n Air , Kevi n Scott CommutAir , And y Pric e CommulAir , Joe l Raymon d Continental , Bruc e Keine r Continental , Da n Weis s Continental , Lorry Hallowa y Delt aAi r Line s Amy Marti n Delt aAi r Lines , Jef

f Morga n Delt aAi r Lines , Da n Shuma n Delt aAi r Lines , Jo e Esposit o Delt aAi r Lines , Sasch aVanderbelle n Delta , Kare n Zachary Executiv e Airlines , Kat e Sole d Grea t Lake s Airlines , Chuc k

Howel l Grea t Lake s Airlines , Dou g Vos s Great Lake s Airlines , Gre g Stephen s Gulfstream , Dav e Hacket t Gulfstream , Micke y Bowma n Gulfstream , T

. Coope r Homelan dSecurity , Michae l Duff y Homelan dSecurity , Rand y Web b Horizo n Air , Dan Russ o Horizo n Air , Jennife r

Thompso n Horizo n Air , Jef

f Col e ICEPR , Lui s Irizarry Islan dAi r

Charters , Lind aHous e Je t Air , Danie l Wolfor d Kenmor e Air , Ti mBrook s Mes aAi r Group , Jonatha n Orastei n Mes aAi r Group , Michae l Lot z Mes aAi r Group , Mik e Holcomb Mesaba , Ma x Shemes h Mesaba , Joh n Spanjer s Midwes t Airlines , Anthon y Intravi a Midwes t Airlines , Davi dReev e Midwes t Airlines , Gre g Aretaki s M N Aviation , Jos e Maldonad o Mult i Aero , Dame a Mult i Aero , Shan e Stor z NYDC , Heno k

Aray a Northwest , Aaro n Murra y Northwest , Ti mMcDonal d OST , Denni s DeVany , Rene e Williams , OST , Kevi n Adams , Bria n Swanso n Pacifi c Wings , Fran k

For d Pacifi c Wings , Gre g Kahlstor f Pinnacl e Airlines , Jo e William s Pinnacl e Airlines , Phi l Ree d Publi c Charters , Ji mGallaghe r Salmo n Air , Da n Schroede r Salmo n Air , JoAn n Wolter s Scenic , Mary Schneide r Scenic , Mitz i Daine s Seabom e Airlines , Wayn e D'Amic o SeaPort Airlines

. Ro b McKinne y Shuttl e America , Jerr y Baisan o SkyWest , Eri c Christense n SkyWest , Michae l Thompso n Sovereig n Air , Bo b Kam s Sovereig n Air , Loi s R

. Barto n Tradewind , Eri c Zipki n Tran s States , Bil l Mish k Tran s States , Gerry Wigmor e United , Alici aGabrie l United , Jame s Stame s U S Airways , Howar dKas s U S Airways , Jaso n Reisinge r U S Airways , Benjami n Slocu m Vintag e Prop s an dJets , Nat e Vallie r Wing s o f Alaska , Bo b Jacobse n Wing s o f Alaska , Michell e Donohu e