Order: 2014-5-8

Served: May 21, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 21st of May, 2014

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is requesting proposals from air carriers interested in providing 

Essential Air Service (EAS) at Augusta/Waterville (Augusta) and/or Rockland, Maine, for a 

new contract period beginning November 1, 2014, with or without subsidy. (See Appendix A 

for a map). Air carriers should file their proposals no later than June 23, 2014.

Background

By Order 2010-9-28 (September 28, 2010), the Department selected Hyannis Air Service, Inc. 

d/b/a Cape Air (Cape Air) to provide EAS at Augusta and Rockland to Boston Logan 

International Airport (Boston) using 9-passenger Cessna 402 aircraft, for a four-year period 

from November 1, 2010, through October 31, 2014. At Augusta, Cape Air provides 28

weekly nonstop round trips during peak season (Memorial Day through Columbus Day) and 

21 weekly nonstop round trips during off-peak season for an annual subsidy of $1,362,616. 

At Rockland, Cape Air provides 35 weekly nonstop round trips in July and August, 28 weekly 

nonstop round trips in June and September, and 21 weekly nonstop round trips from October 

through May for an annual subsidy of $1,420,545.

The complete public file for EAS at Augusta and Rockland may be accessed online through 

the Federal Dockets Management System at: www.regulations.gov by entering Docket 

number DOT-OST-1997-2784 in the “Search for Rules, Comments, Adjudications, or 

Supporting Documents” field.

Essential Air Service at

AUGUSTA/WATERVILLE, MAINE

ROCKLAND, MAINE

Under 49 U.S.C. § 41731 et seq.

Docket DOT-OST-1997-2784
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Request for Proposals

As the end of the current contract approaches, the Department is requesting proposals from air 

carriers interested in providing EAS at Augusta and/or Rockland, with subsidy support if 

necessary, for a new contract period beginning November 1, 2014. Carriers should file their 

proposals no later than June 23, 2014. Staff will then docket the proposals, thereby making 

them public. Shortly afterwards, we will provide a summary of the proposals to the 

communities and ask them to submit their final comments. We will give full consideration to 

all proposals that are timely filed.1

Interested air carriers should prepare their proposals with every expectation that their initial 

proposals will represent their final and only proposals. However, we retain the discretion to 

negotiate proposals with carriers when we deem it desirable; in such cases, of course, we will 

give all applicants the same opportunity. We also retain the discretion to reject outright all 

unreasonable or unrealistic proposals and re-solicit a new round of proposals. However, 

negotiation and rejection are 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. Air 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 

www.regulations.gov, each page should be formatted to be viewed online. We expect 

proposals to adequately describe 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, we would recommend that they include information concerning 

proposed schedules and projected block hours. In addition, applicants are urged to provide 

financial data supporting their subsidy requests, including information on their projected 

expenses and revenues. We strongly encourage clear, well-documented proposals that will 

facilitate their evaluation by the affected communities and the Department.2

Proposals should provide sufficient capacity to accommodate historical levels of traffic. In 

order to assist air carriers in developing traffic and revenue projections for their proposals, we 

 1 Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide 

EAS without subsidy and we determine that basic EAS, as required by 49 U.S.C. § 41732, can be reliably 

provided without such compensation, we typically will 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 EAS for an eligible place not in Alaska, 49 U.S.C. § 41733(c)(1) 

directs us to consider five factors: (a) service reliability; (b) contractual and marketing arrangements with a 

larger carrier at the hub; (c) interline arrangements with a larger carrier at the hub; (d) community views, giving 

substantial weight to the views of the elected officials representing the users; and (e) whether the carrier has 

included a plan in its proposal to market its service to the community. In addition, the Consolidated 

Appropriations Act, 2014, Public Law No. 113-76, 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.
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have provided a summary of historical passengers in Appendix B.3 During the year ended 

December 31, 2013, Augusta averaged 18 enplanements per day and Rockland averaged 23

enplanements per day. The Department expects proposals similar to what the communities 

currently receive, with service to Boston or other large- or medium-hub airport that provides 

access to the national air transportation system. At both communities, air carriers should take 

into account the seasonality of each market. 

Air carriers are also welcome to propose more than one service option, if they choose. They

also need not limit themselves to these requirements if they envision other, potentially more 

attractive service possibilities -- different hubs or length of contract, for example -- with 

subsidy requirements that remain competitive.

Community Comments

The communities are welcome to submit comments at any time. We encourage prospective 

applicants to contact the communities before they submit their proposals so that they can tailor 

them to the communities’ needs, as they will not be able to amend them after the due date. As 

noted earlier, we will provide a summary of the proposals to the civic parties shortly after the 

deadline for carrier proposals, and ask them to submit their final comments.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.4 Consequently, all carriers receiving 

Federal subsidy for EAS 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 contract 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, all carriers that plan to submit 

proposals involving subsidy should be aware that the selected carrier will be required to 

complete the required certifications. Interested carriers requiring more detailed information 

regarding these requirements should contact the Office of Aviation Analysis at 

(202) 366-5903.5

This Order is issued under authority delegated in 49 CFR Part 1.25a(b) and re-delegated to the 

Director, Office of Aviation Analysis.

 

3 Source: Bureau of Transportation Statistics, Schedule T-100

4 The regulations applicable to these areas are: (1) 49 CFR Part 20 -- New Restrictions on Lobbying; 

(2) 49 CFR Part 21 -- Nondiscrimination in Federally-Assisted Programs of the Department of Transportation --

Effectuation of Title VI of the Civil Rights Act of 1964; (3) 49 CFR Part 27 -- Nondiscrimination on the Basis of 

Disability in Programs and Activities Receiving or Benefiting from Federal Financial Assistance; (4) 

14 CFR Part 382 -- Nondiscrimination on the Basis of Disability in Air Travel; and (5) 49 CFR Part 29 --

Government-Wide Debarment and Suspension (Non-Procurement) and Government-Wide Requirements for 

Drug-Free Workplace (Grants).

5 The certifications are also available on the web at http://www.dot.gov/policy/aviation-policy/small-communityrural-air-service/essential-air-service. 
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ACCORDINGLY,

1. We request that carriers interested in providing Essential Air Service at Augusta and/or 

Rockland, Maine, submit their proposals, with subsidy support if necessary, no later than 

June 23, 2014. The proposals should be e-mailed to: michael.f.martin@dot.gov with the title

“Proposal to Provide EAS at Augusta and/or Rockland”;6

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

3. We will serve copies of this Order on the Mayors of Augusta, Waterville, and Rockland, 

Maine, the Airport Manager of Augusta State Airport, the Airport Manager of Knox County 

Regional Airport, Hyannis Air Service, Inc. d/b/a Cape Air, and the service list for this docket.

Persons entitled to petition the Department for review of this Order under the Department’s 

Regulations, 14 CFR Part 385.31(a), must file such petitions within seven (7) 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

online at www.regulations.gov. 

 6 Questions regarding filings in response to this Order may be directed to Michael Martin at (202) 366-6494 or

michael.f.martin@dot.gov. 
Appendix A

AREA MAP

Maps generated by the Great Circle Mapper - copyright © Karl L. Swartz.
Appendix B

Page 1 of 2

Augusta, Maine

Quarter Year Deplanements Enplanements Total Traffic

Enplanements per 

Day

1 2010 633 670 1,303 8

2 2010 952 751 1,703 11

3 2010 1,497 1,566 3,063 19

4 2010 1,199 1,117 2,316 15

Annual 

Totals 4,281 4,104 8,385 13

1 2011 877 933 1,810 12

2 2011 1,422 1,299 2,721 17

3 2011 2,119 2,108 4,227 27

4 2011 1,203 1,221 2,424 15

Annual 

Totals 5,621 5,561 11,182 18

1 2012 1,016 1,058 2,074 13

2 2012 389 338 727 5

3 2012 2,114 2,040 4,154 26

4 2012 1,183 1,188 2,371 15

Annual 

Totals 4,702 4,624 9,326 15

1 2013 975 1,047 2,022 13

2 2013 1,615 1,462 3,077 20

3 2013 1,912 1,840 3,752 24

4 2013 1,217 1,201 2,418 15

5,719 5,550 11,269 18
Appendix B

Page 2 of 2

Rockland, Maine

Quarter Year Deplanements Enplanements Total Traffic

Enplanements per 

Day

1 2010 818 932 1,750 11

2 2010 1,690 1,547 3,237 21

3 2010 3,168 3,301 6,469 41

4 2010 1,462 1,546 3,008 19

Annual 

Totals 7,138 7,326 14,464 23

1 2011 1,063 1,206 2,269 15

2 2011 1,722 1,626 3,348 21

3 2011 3,044 3,160 6,204 39

4 2011 1,628 1,672 3,300 21

Annual 

Totals 7,457 7,664 15,121 24

1 2012 1,188 1,338 2,526 16

2 2012 2,035 1,928 3,963 25

3 2012 3,202 3,292 6,494 41

4 2012 1,486 1,514 3,000 19

Annual 

Totals 7,911 8,072 15,983 26

1 2013 1,086 1,245 2,331 15

2 2013 1,834 1,713 3,547 23

3 2013 2,893 2,933 5,826 37

4 2013 1,287 1,375 2,662 17

Annual 

Totals 7,100 7,266 14,366 23
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 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 complete, 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.

Funds may not be available for performance under this Order beyond [DATE]. The Government’s 

obligation for performance under this Order beyond [DATE], 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 [DATE], until funds are made 

available to the Department for performance. If sufficient funds are not made available for 

performance beyond [DATE], the Department will provide notice in writing to the carrier.

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.

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.