Order: 2014

- 2

- 3

Served February 4, 2014

U N

I T E D S

T A T E S O F A

M E R I C A D E P A R T M E N T O F T R A N S P O R T A T

I O

N UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 4 th day of February , 20 1 4

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 Al amosa and Cortez, Colorado

, for a new two

- year period, with

or without subsidy support , beginning August 1, 2014 . Proposals are due March 14 , 201 4

. (See

Appendix A for a map. )

B a c k g r o un d

By Order 2012

- 8

- 7 , issued on August 3, 2012

, the Department re

- se lected 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 a nnual subsidy rate s 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

- OST

1998

- 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 a re 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 wi ll provide a2

s ummary o f 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 wi th 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 provi de 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 evalua tion by the affected community and the Department. 2

The Department expects proposals that are co nsistent 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 opportuniti es 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 a ircraft (9

- passenger), we will consider

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

manner. Air c arriers 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 servic e possibilities

-- different hubs or length of contract, for

example

-- with subsidy requirements that remain competitive.

Interested air carriers should prepare their propo s al with every expectation that their initial

proposal will also be their final an d 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 opportuni t y. We also retain the discretion to reject outright all

unreasonab l e or unrealistic proposals and solicit a new round of proposals. However, we

anticipate that negotiation or rejection will remain on l y occasional exceptions to the rule.

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

have summarized historical passenge r 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 passenge rs, or an

1 Air carriers should not expect the Department to accept late filings. In cases where a carrier pr oposes 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 t he 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 conside red since the inception of the program.

.3

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

O t h e r Air Ca rr i e r R e qu i reme n t s

The Department is responsible for implementing various Federal stat utes governing l obbying

activities , drug

- free workplaces and nondiscrimination

. 4 Consequent l y, all air carriers

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

Department regulations regarding drug

- free workplaces an d nondiscrimination, and those air

carr i ers whose subsidies exceed $100,000 over the life of the rate term must also certify that

they are in compliance with the regu l ations governing lobbying activities. All air carriers that

plan to submit proposals inv olving subsidy should submit the required certifications along

with their proposals. Interested air carriers requiring more detailed infor m ation regarding

the s e requirements, as well as copies of the certifications, should contact the Off i ce of

Aviation A na l ysis at (202) 366

- 5903. The Department is prohibited from paying subsidy to

air carriers that do not submit these document s

. 5

C o m m un i t y C o m m e n ts

Civic officials and the State are welco m e to submit comments at any time. We encourage

prospective applic ants to contact the communi t y before they submit their proposals so that

they can tailor them to the communi t y’s needs, as they will not be ab l e to amend them after

the due date. As noted earlier, we will provide a copy of the propo s als to the civic parti es and

ask them to submit their final comments short l y after March 14 , 201 4 , the due da t e for air

carr i er 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.

ACC ORDI N G L Y,

1. We request that air carriers interested in providing E ssential A ir S erv i ce 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 Fed eral 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 (non

procurement) and government

- wide requirements for drug

- free workplace (grant s).

5 The certifications are also available on the web at http://www.dot.gov/policy/aviation

- policy/small

community

- 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

- 9967.4

2

. Docket s DOT

- OST

- 1997

- 2960 and DOT

- OST

- 1998

- 3508 will r emain open until furt her

Order of the Department; and

3

. The Department will serve cop i es of this Order on the civic offic i als of Alamosa and

Cortez, Colorado

, the Manager of San Luis Valley Regional Airport

, the Manager of Cortez

Municipal Airport, Grea t 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 availabl e

online at www.regulations.gov.Appendix A

Page 1 of 2



### A R EA M AP OF ALAMOSA, COLORADOAppendix A

Page 2 of 2

M ap s g e ne r a t e d b y t h e G r eat Ci r cle M appe r

- c op y r i g h t © Ka r l L. S w a r t z

. 

### A R EA M AP OF CORTEZ, COLORADOAppendix A

Page 2 of 2

M ap s g ene r a t e d b y t h e G r eat Ci r cle M appe r

- c op y r i g h t © Ka r l L. S w a r t z

.



### Historical passenger Traffic at Alamo sa, Colorado 1

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, Colorado 1

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 2,02 0 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 Easse ntial Air Service

The air c a rr i e r un d er st a nds t h a t it m a y f o rfe it its c omp e ns a tion f or a n y f li g hts th a t it do e s not

op era te in c o n f o r m a n c e with the t er ms a nd stipul a tions of the ra te Order

, i n c luding the s er vi c e

pl a ns outlin e d in the Order a nd a n y oth e r s i g ni f i c a nt e l e m e nts of the re qui re d s er vi ce , without

p r ior a p p r ov a l. The air c arr i e r und e r st a nds th a t a n a i r cr a f t t a k e

- o f f a nd l a nding a t its s c h e du l e d

d e stin a tion c onstitut e s a c ompl e t e d f li g ht; a bs e nt a n e x pl a n a tion suppo r ting subsi d y e li g i b ili t y f o r

a f l i g ht th a t h a s n ot b ee n c ompl e t e d, su c h a s cer t a in w ea th e r ca n ce ll a tions, o n l y c ompl e t e d f li g hts

a r e c onsid ere d e l i g ible f or su b si d y

. I n a ddition, if the air carr i e r d o e s not s c h e dule or o p era t e its

f li g hts in f ull c on f o r m a n c e with the Order f o r a s i g ni f i ca nt p e r iod, it m a y j e op ar di z e its e nti r e

subsi d y c l a im f or t he p er iod in qu e stion. I f the air c a rr i e r c ont e mpl a t e s a n y su c h c h a ng e s b e y ond

the s c ope o f the Order du r ing the a ppli ca ble p e r iod of th e se ra t e s, it must f i r st noti f y the O ff i c e of

Avi a tion An a l y sis in w r iti n g a nd r ece ive w r itt e n a pp r o v a l f r om the D e p a r tm e nt to be e nsu re d o f

f ull c omp e ns a tion. S hould c i rc umst a n ce s w arr a n t , the D e p ar tm e nt m a y l o c a te a nd s e l e c t a

re pl a ce m e nt air c arr i e r to p r ovide s er vi c e on th e se r out e s. The air c a rr i e r must c ompl e te a ll

f li g hts th a t ca n b e s a f e l y op era t e d; f l i g hts th a t ov e rf l y points f o r l ac k of t r a f f ic will not be

c omp e ns a t e d. I n d e t er m i ning wh e t h e r subsi d y p a y m e nt f o r a d e v i a ting f l i ght should be a djust e d

or dis a llow e d, t he D e p a r tm e nt will c onsid e r the e x t e nt to whi c h the g o a ls of the p r og ra m a r e m e t

a nd the e x t e nt of acce ss to the n a tion a l a ir t ra nspo r t a tion s y s t e m p r ovid e d to the c ommuni t y

.

I f the D e p ar tm e nt unil a t e ra l l y

, e ith e r p a r ti a l l y or c ompl e t e l y , t er min a t e s or re du ce s p a y m e nts f or

s e r vi c e or c h a ng e s s er vi c e r e qui re m e nts a t a sp ec i f ic lo c a tion p r ovid e d f or und e r this Order, th e n,

a t the e nd of the p e r iod f or whi c h the D e p ar tm e nt d o e s m a ke p a y m e nts in the stipul a t e d a mounts

or a t the stipul a t e d s er vi c e l e v e ls, the air c a rr i e r m a y cea se to p r ovide s er v i c e t o th a t sp ec i f ic

lo c a tion without re g a r d to a n y r e qui re m e nt f or noti c e of su c h c e ss a tion. Those a djustm e nts in the

l e v e ls of subsi d y a nd/or s er vi c e th a t ar e mutu a l l y a g r ee d to in w r iting b y the D e p ar tm e nt a nd air

ca r r i e r do not c on s titute a tot a l or p ar ti a l re d u c tion or ce ss a tion of p a y m e nt.

S ubsi d y c ont r a c ts ar e su b j ec t to, a nd in c o r po r a te b y r ef e re n c e

, r e l e v a nt st a t ut e s a nd D e p ar tm e nt

r e g ul a tions, a s th e y m a y be a m e nd e d fr om time to tim e . How e v er

, a n y su c h st a tut e s, r e g ul a tions,

or a m e ndm e nts th ere to sh a ll not op era te to c ont r o v er t the f o r e g oi n g p ar a g r a ph.

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 no t 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 be ing claimed. For example, claims for service

provided in July must be filed by October 31 st ; August claims must be submitted by November

30 th , and so on.