Order: 2014-6-8

Served June 17, 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 17th day of June, 2014

 Essential Air Service at

 LAKE MINCHUMINA, ALASKA

 RAMPART, ALASKA

Under 49 U.S. C. § 47131 et seq.

 DOCKET DOT-OST-2008-0237

 DOCKET DOT-OST-2008-0201

 

ORDER REQUESTING PROPOSALS

Summary

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

Essential Air Service (“EAS”) at Lake Minchumina and Rampart, Alaska, with or without

subsidy support, beginning November 1, 2014. Proposals are due July 16, 2014. (See Appendix 

A for a map.) 

Background

By Order 2012-10-14, issued on October 11, 2012, the Department re-selected Wright Air 

Service, Inc., (“Wright”) to provide subsidized EAS at Lake Minchumina, Alaska, using 9- and 

4-seat aircraft, with two nonstop round trips per week to Fairbanks, for the period of 

November 1, 2012, through October 31, 2014, at an annual subsidy rate of $102,300. Also by 

that Order, the Department re-selected Warbelow’s Air Ventures, Inc., (“Warbelows”) to provide 

subsidized EAS at Rampart, Alaska, using 9-seat aircraft, with two nonstop round trips per week 

to Fairbanks, for the period of November 1, 2012, through October 31, 2014, at an annual 

subsidy rate of $76,416.

That Order, as well as the complete public file for EAS at Lake Minchumina and Rampart, may 

be accessed online through the Federal Docket Management System at

http://www.regulations.gov, by entering “DOT-OST-2008-0237” for Lake Minchumina and 

“DOT-OST-2008-0201” for Rampart in the “SEARCH for: Rules, Comments, Adjudications or 

Supporting Documents:” field.

Request for Proposals

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

interested in providing EAS at Lake Minchumina and/or Rampart, with or without subsidy

support, for the two-year period beginning November 1, 2014. Air carriers should file their 
2

proposals no later than July 16, 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 Lake Minchumina and Rampart and on the other applicants. Shortly afterwards, 

we will provide a summary of the proposals to the community 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. 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 recommend they include information concerning proposed 

schedules and projected block hours. In addition, applicants are encouraged 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. Specifically, we 

request proposals for two nonstop round trips a week between the EAS community and Fairbanks, or 

another suitable hub airport, with small aircraft (9-seats or less). In order to assist air carriers in 

making traffic and revenue forecasts, we have included historical traffic in Appendix B. Typically in 

Alaska, mail and freight flows are asymmetrical, with up to 90% of the total mail and freight flowing 

outbound from the hub airport to the EAS communities. Historical traffic data (Appendix B) show 

that two round trips a week is sufficient to fulfill the EAS needs of each community.

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 

 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 in Alaska, 49 U.S.C. § 41733(c)(1) directs us to consider six 

factors: (1) service reliability; (2) contractual and marketing arrangements with a larger air carrier at the hub; (3) 

interline arrangements with a larger air carrier at the hub (4) community views; (5) the experience of the applicant 

in providing, in Alaska, scheduled air service or significant patterns of non-scheduled air service; and (6) whether 

the air carrier has included a plan in its proposal to market the service. In addition, Consolidated Appropriations 

Act, 2012, Public Law 112-55, and continued by the Full-Year Continuing Appropriations Act, 2013, Public Law 

No. 113-6, 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 air 

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.
3

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.

Other Air Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying

activities, drug-free workplaces and nondiscrimination. 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. 3

Community Comments

Civic officials and the State 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 copy of the proposals to the civic parties and 

ask them to submit their final comments shortly after July 16, 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 Lake 

Minchumina and Rampart, Alaska, submit their proposals, with or without subsidy requests, 

no later than July 16, 2014. The proposals should be emailed to: EAS@dot.gov with the title 

“Proposal to Provide Essential Air Service at Lake Minchumina, Alaska” and/or “Proposal to 

Provide Essential Air Service at Rampart, Alaska;”4

2. Dockets DOT-OST-2008-0237 and DOT-OST-2008-0201 will remain open until further 

Order of the Department; and 

 3 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). The certifications are available 

on the web at http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/essential-air-service. 

4 Questions regarding filings in response to this Order should be directed to Mr. Scott Faulk at scott.faulk@dot.gov 

or (202) 366-9967.
4

3. The Department will serve copies of this Order on the civic officials of Lake Minchumina 

and Rampart, Alaska, the Alaska Department of Transportation and Public Facilities, 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

AREA MAP

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

1 of 2

Lake Minchumina, Alaska1

Year Quarter Pax

Freight 

PEQ

Mail 

PEQ Total Year Quarter Pax

Freight 

PEQ

Mail 

PEQ Year Quarter Pax

Freight 

PEQ

Mail 

PEQ Total

2011 3 50 7 3 60 2011 3 59 34 25 118 2010 4 109 41 27 177

2011 4 19 1 3 23 2011 4 20 23 33 76 2011 1 39 23 36 98

2012 1 9 1 1 11 2012 1 13 12 40 65 2011 2 22 13 41 76

2012 2 28 1 4 33 2012 2 36 8 31 75 2011 3 64 9 35 108

Total 106 10 11 127 128 77 129 334 234 87 140 461

2012 3 63 1 2 66 2012 3 67 23 29 119 2011 4 130 24 31 185

2012 4 17 1 2 20 2012 4 21 11 29 61 2012 1 38 11 31 80

2013 1 28 1 1 30 2013 1 25 7 35 67 2012 2 53 9 36 98

2013 2 33 6 1 40 2013 2 35 21 19 75 2012 3 68 27 20 115

Total 141 9 6 156 148 62 112 322 289 71 118 478

2013 3 47 15 2 64 2013 3 61 26 17 104 2012 4 108 42 19 169

2013 4 14 4 2 20 2013 4 22 11 22 55 2013 1 36 15 24 75

2014 1 21 1 2 24 2014 1 25 19 34 78 2013 2 46 19 36 101

2014 2 18 5 2 25 2014 2 21 12 20 53 2013 3 39 17 22 78

Total 100 25 8 133 129 68 93 290 229 93 101 423

Origination Destination Origin and Destination

 1 Source: Bureau of Transportation Statistics; Schedule T-100. PEQs: Passenger Equivalents. Every 200 pounds of freight or mail is 

the equivalent of one passenger. 
Appendix B

2 of 2

Rampart, Alaska1

Year Quarter Pax

Freight 

PEQ

Mail 

PEQ Total Year Quarter Pax

Freight 

PEQ

Mail 

PEQ Total Year Quarter Pax

Freight 

PEQ

Mail 

PEQ Total

2011 3 33 2 3 38 2011 3 33 19 9 61 2011 3 66 66 13 145

2011 4 30 1 1 32 2011 4 33 18 7 58 2011 4 63 19 9 91

2012 1 35 2 2 39 2012 1 33 16 8 57 2012 1 68 18 10 96

2012 2 59 2 1 62 2012 2 56 25 7 88 2012 2 115 28 8 151

157 7 7 171 155 78 31 264 312 131 40 483

2012 3 59 2 3 64 2012 3 93 33 7 133 2012 3 152 35 10 197

2012 4 37 1 1 39 2012 4 38 17 8 63 2012 4 75 18 64 157

2013 1 36 1 1 38 2013 1 36 15 9 60 2013 1 72 16 10 98

2013 2 63 1 2 66 2013 2 58 30 9 97 2013 2 121 31 11 163

195 5 7 207 225 95 33 353 420 100 95 615

2013 3 59 2 1 62 2013 3 47 39 6 92 2013 3 106 41 7 154

2013 4 39 1 1 41 2013 4 43 24 7 74 2013 4 82 25 8 115

2014 1 30 3 1 34 2014 1 29 24 5 58 2014 1 59 27 6 92

2014 2 13 1 1 15 2014 2 26 11 2 39 2014 2 39 12 3 54

141 7 4 152 145 98 20 263 286 105 24 415

Origination Destination Origin and Destination

 1 Source: Bureau of Transportation Statistics; Schedule T-100. PEQs: Passenger Equivalents. Every 200 pounds of freight or mail is 

the equivalent of one passenger. 
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.