Order: 2014-2-3

Served February 4, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 4th day of February, 2014

 Essential Air Service at

 ALAMOSA, COLORADO

 CORTEZ, COLORADO

Under 49 U.S. C. § 47131 et seq.

 DOCKET DOT-OST-1997-2960

 DOCKET DOT-OST-1998-3508

 

ORDER REQUESTING PROPOSALS

Summary

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

Essential Air Service (“EAS”) at Alamosa and Cortez, Colorado, for a new two-year period, with 

or without subsidy support, beginning August 1, 2014. Proposals are due March 14, 2014. (See 

Appendix A for a map.) 

Background

By Order 2012-8-7, issued on August 3, 2012, the Department re-selected Great Lakes Aviation, 

Ltd. (“Great Lakes”) to provide subsidized EAS at Alamosa and Cortez with 18 nonstop round 

trips per week to Denver using 19-passenger Beechcraft B-1900D aircraft, for the period from

August 1, 2012, through July 31, 2014, at annual subsidy rates of $2,078,676 and $2,240,766, 

respectively. That Order, as well as the complete public file for EAS at Alamosa and Cortez,

may be accessed online through the Federal Docket Management System at 

http://www.regulations.gov, by entering “DOT-OST-1997-2960” (Alamosa) or “DOT-OST1998-3508” (Cortez) in the SEARCH for: Rules, Comments, Adjudications or Supporting 

Documents:” field.

Request for Proposals

As the end of the rate term approaches, we are here requesting proposals from air carriers 

interested in providing EAS at Alamosa and/or Cortez, with or without subsidy support, for a 

new contract term beginning August 1, 2014. Air carriers should file their proposals no later 

than March 14, 2014. After that date, our staff will docket the proposals, thereby making them 

public. Additionally, we request each air carrier serve a copy of its proposal on the civic parties 

at the above communities and on the other applicants. Shortly afterwards, we will provide a 
2

summary of the proposals to the communities and ask them to submit any formal comments on 

this carrier-selection case. We will give full consideration to all proposals that are timely filed.1 

We are here providing interested air 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 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 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 community and the Department.2

The Department expects proposals that are consistent with what the communities currently 

receives, namely 18 nonstop round trips per week using 19-passenger aircraft to Denver or 

another suitable hub airport that provides numerous connecting opportunities to the national 

air transportation system. Alternatively, we will accept proposals for 12 round trips per week 

using 30-passenger aircraft or larger or if smaller aircraft (9-passenger), we will consider 

additional frequencies. We encourage proposals that meet these guidelines in an efficient 

manner. 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.

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

proposal will also be their final and only proposal. We retain the discretion to negotiate 

proposals with air carriers when we deem it desirable; in such cases we will give all 

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

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

anticipate that negotiation or rejection will remain only occasional exceptions to the rule.

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

have summarized historical passenger levels at Alamosa and Cortez in Appendix B. In the most 

recent 12-month period for which data are available (October 1, 2012, through 

September 30, 2013) Alamosa generated 14,052 total origin and destination passengers, or an 

 1 Air 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 service can be reliably provided without such compensation, we usually 

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 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. 

. 
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average of 22 enplanements per day and Cortez generated 16,336 total origin and destination 

passengers, or an average of 26 enplanements per day.3

Other Air Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying

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

receiving Federal subsidy to support EAS must certify that they are in compliance with 

Department regulations regarding drug-free workplaces and nondiscrimination, and those air 

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. All air carriers that 

plan to submit proposals involving subsidy should submit the required certifications along 

with their proposals. Interested air 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 

air carriers that do not submit these documents. 5

Community Comments

Civic officials and the State are welcome to submit comments at any time. We encourage

prospective applicants to contact the community before they submit their proposals so that 

they can tailor them to the community’s needs, as they will not be able to amend them after 

the due date. As noted earlier, we will provide a copy of the proposals to the civic parties and 

ask them to submit their final comments shortly after March 14, 2014, the due date for air 

carrier proposals.

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

Director, Office of Aviation Analysis.

ACCORDINGLY,

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

Cortez, Colorado, submit their proposals, with or without subsidy requests, no later than 

March 14, 2014. The proposals should be emailed to: EAS@dot.gov with the title “Proposal 

to Provide Essential Air Service at Alamosa, Colorado” and/or “Proposal to Provide Essential 

Air Service at Cortez, Colorado;”6

 3 Enplanements represent one-half of total origin-and-destination traffic.

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; 49 CFR Part 27 – Nondiscrimination on the basis of disability in programs 

and activities receiving or benefiting from Federal financial assistance; and 14 CFR Part 382 – Nondiscrimination 

on the basis of disability in air travel; and (3) 49 CFR Part 29 – Government-wide debarment and suspension (nonprocurement) 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/smallcommunity-rural-air-service/essential-air-service.

6 Questions regarding filings in response to this Order should be directed to Mr. Scott Faulk at 

scott.faulk@dot.gov or (202) 366-9967.
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2. Dockets DOT-OST-1997-2960 and DOT-OST-1998-3508 will remain open until further 

Order of the Department; and 

3. The Department will serve copies of this Order on the civic officials of Alamosa and 

Cortez, Colorado, the Manager of San Luis Valley Regional Airport, the Manager of Cortez 

Municipal Airport, Great Lakes Aviation, Ltd., 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

An electronic version of this document is available

online at www.regulations.gov.
Appendix A

Page 1 of 2

AREA MAP OF ALAMOSA, COLORADO
Appendix A

Page 2 of 2

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

AREA MAP OF CORTEZ, COLORADO
Appendix A

Page 2 of 2

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

Historical passenger Traffic at Alamosa, Colorado1

Year Quarter Enplanements Deplanements Total

2010 4 1,672 1,610 3,282

2011 1 1,352 1,382 2,734

2011 2 1,657 1,685 3,342

2011 3 2,312 2,209 4,521

Total 6,993 6,886 13,879

2011 4 1,783 1,720 3,503

2012 1 1,439 1,449 2,888

2012 2 1,611 1,729 3,340

2012 3 2,198 2,192 4,390

Total 7,031 7,090 14,121

2012 4 1,701 1,669 3,370

2013 1 1,421 1,331 2,752

2013 2 1,728 1,717 3,445

2013 3 2,176 2,198 4,374

Total 7,026 7,026 14,052

 1 Source: Bureau of Transportation Statistics; Schedule T-100. 
Appendix B

Page 2 of 2

Historical passenger Traffic at Cortez, Colorado1

Year Quarter Enplanements Deplanements Total

2010 4 1,661 1,730 3,391

2011 1 1,431 1,310 2,741

2011 2 1,638 1,714 3,352

2011 3 2,148 2,068 4,216

Total 6,878 6,822 13,700

2011 4 1,771 1,878 3,649

2012 1 1,669 1,684 3,353

2012 2 1,906 2,020 3,926

2012 3 2,273 2,138 4,411

Total 7,619 7,720 15,339

2012 4 1,693 1,972 3,665

2013 1 1,726 1,835 3,561

2013 2 2,048 2,183 4,231

2013 3 2,466 2,413 4,879

Total 7,933 8,403 16,336

 1 Source: Bureau of Transportation Statistics; Schedule T-100. 
Appendix C

Example of General Terms and Conditions for Eassential Air Service

The air 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 air 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 air 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 air 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 air carrier to provide service on these routes. The air 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 air 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 air 

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 [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. 

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.