Order: 2012-8-8

Served: August 3, 2012

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 3rd day of August, 2012

Essential Air Service at

LARAMIE, WYOMING

WORLAND, WYOMING

DOCKET DOT-OST-1997-2958

DOCKET DOT-OST-1997-2981

under 49 U.S.C. 41731 et seq.

ORDER SELECTING AIR CARRIERS

Summary

By this Order, the Department is making Essential Air Service (EAS) air carrier selections 

at Laramie and Worland, Wyoming. At Laramie, SkyWest Airlines, Inc., operating as 

United Express (SkyWest), will provide 14 weekly nonstop round trips to Denver 

International Airport (Denver) using 30-passenger Embraer EMB-120 aircraft for an annual 

subsidy of $1,635,346.

In addition, we are re-selecting Great Lakes Aviation, Ltd., operating as both a United 

Airlines and Frontier Airlines code-share (Great Lakes), at Worland to provide 12 weekly 

one-stop round trips using 19-passenger Beechcraft 1900 aircraft for an annual subsidy of 

$1,987,148.

1

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated 

funds.
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Background

By Order 2010-8-10, August 18, 2010, the Department selected Great Lakes to provide 

EAS at Laramie and Worland using 19-passenger Beechcraft 1900 aircraft to Denver. 

Laramie receives 19 weekly nonstop round trips for an annual subsidy of $1,181,572, and 

Worland receives 12 weekly one-stop round trips over a Worland-Cheyenne-Denver or 

Worland-Laramie-Denver routing for an annual subsidy of $1,770,336. 

As the end of the contracts were approaching, we issued Order 2012-4-31, April 26, 2012, 

requesting proposals from air carriers interested in providing EAS at the communities for a 

new term beginning October 1, 2012. In response to that Order, we received proposals

from Great Lakes and SkyWest.

Both air carriers’ complete proposals and the communities’ comments may be accessed 

online at http://www.regulations.gov/ by entering each community’s Docket number in the 

search block: Laramie, Docket DOT-OST-1997-2958, and Worland, Docket DOT-OST1997-2981.

Proposal of Great Lakes

Great Lakes proposed one option each for Laramie and Worland to be considered on a 

stand-alone basis. At Laramie, the airline proposed status-quo service of three weekday 

and weekend (18 a week) nonstop round trips to Denver using 19-passenger Beechcraft 

1900 aircraft for an annual subsidy of $1,536,014. At Worland, the airline proposed two 

weekday and two weekend (12 a week) one-stop round trips over a Worland-CheyenneDenver or Worland-Riverton-Denver or Worland-Laramie-Denver routing using 19-

passenger Beechcraft 1900 aircraft for an annual subsidy of $1,987,148. All flights will 

operate under a code-share agreement with United Airlines and Frontier Airlines.

Proposal of SkyWest 

SkyWest submitted a proposal for service only from Laramie. It proposed two daily 

nonstop round trips (14 a week) to Denver using 30-passenger Embraer EMB-120 aircraft 

for an annual subsidy of $1,635,346. The flights will operate under a code share with 

United Airlines and will operate as United Express.

Community Comments

On June 6, 2012, we requested from both communities comments regarding this EAS 

selection case. In response, we received three official letters from Laramie. In a letter 

from the Laramie Regional Airport Board, the members state their strong support for 

SkyWest, adding “We are certain that SkyWest provides us with the only marketing 

opportunity to increase boardings to a level that would no longer require an EAS subsidy.”

City Manager Janine Jordan emphasized in her letter Laramie’s need for high quality, 

reliable air service, and because of this need, the community believes that SkyWest is the 

airline “best positioned to provide the timely and consistent service our citizens require.” 

We also heard from Mr. Tim Sullivan, Chairman of Albany County Board of 

Commissioners, who reiterated the community’s support for SkyWest. 
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We received no official comments from Worland, other than an e-mail from Mr. Gary 

Thompson, Airport Manager at Worland Municipal Airport, stating “With Great Lakes as 

the only bidder for the Worland market, we have no comments at this time.”

Decision

After carefully reviewing each air carrier’s proposal, we have decided to select SkyWest at 

Laramie and re-select Great Lakes at Worland. We find the subsidy and service levels 

reasonable and will meet both communities’ needs.

At Laramie we were faced with a choice between SkyWest and Great Lakes, and all 

feedback we received from the community supported SkyWest’s proposal. In addition, 

SkyWest has provided reliable EAS at a number of communities for several years and we 

are confident that SkyWest will not only meet the air service needs of the community but 

also enhance its existing air service. SkyWest’s service to Denver operating as United 

Express will provide the community with the seamless service to the national air 

transportation system. With respect to Worland, the decision to re-select Great Lakes is 

straightforward, given that Great Lakes is the only bidder and we received no objections 

from the community. Furthermore, Great Lakes’ operating with both the United Airlines 

and Frontier Airlines code to Denver will continue to provide the community’s excellent 

connections to the national air transportation system.

We shall make this selection of SkyWest at Laramie and re-selection of Great Lakes

contingent upon the Department’s receiving properly executed certifications from the 

carrier that it is in compliance with the Department’s regulations regarding drug-free 

workplaces and nondiscrimination, as well as the regulations concerning lobbying 

activities.2

Service Transition

We expect Great Lakes and SkyWest to work together to make a smooth transition at 

Laramie. In that regard, before Great Lakes suspends its service they must notify any 

passengers holding reservations for travel after the suspension date, to assist those 

passengers in making alternate air transportation arrangements, or to provide a refund of 

the ticket price, without penalty, if requested. 

Great Lakes’ current EAS contract at Laramie expires on September 30, 2012, and 

SkyWest may not start full EAS by then. In that event, consistent with established program 

policy, we typically use an air carrier’s prospective proposal that was submitted during the 

competitive bid process to establish a bridge rate until the new air carrier inaugurates 

service. After reviewing Great Lakes’ proposed rate for Laramie, we find that it appears 

reasonable for the proposed service levels. We will therefore establish it as the final rate 

for the air carrier’s service at Laramie for the period from October 1, 2012, until SkyWest

inaugurates full EAS.

 2 The certifications are available on the Web at http://ostpxweb.dot.gov/aviation/index.html.
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Carrier Fitness

49 U.S.C. 41737(b) and 41738 require that we find an air carrier fit, willing, and able to 

provide reliable service before we may subsidize it to provide EAS. Great Lakes and 

SkyWest are subject to the Department’s continuing fitness requirements, and no 

information has come to our attention that would cause us to question the carriers’ fitness 

at this time. We have contacted the Federal Aviation Administration, and it has raised no 

concerns that would negatively affect our fitness findings. We therefore conclude that the 

carriers are reliable and remain fit to conduct the operations proposed here.

This Order is issued under authority delegated in 49 CFR 1.56a(f).

ACCORDINGLY,

1. We select SkyWest Airlines, operating as United Express, to provide Essential Air 

Service at Laramie, Wyoming, and establish an annual subsidy rate as described in 

Appendix C;

2. We re-select Great Lakes Aviation, Ltd. to provide Essential Air Service at Worland, 

Wyoming, and establish an annual subsidy rate as described in Appendix C

3. We direct both Great Lakes Aviation, Ltd., and SkyWest Airlines to retain all books, 

records, and other source and summary documentation to support claims for payment, and 

to preserve and maintain such documentation in a manner that readily permits its audit and 

examination by representatives of the Department. Such documentation shall be retained 

for seven years from the service date of this Order or until the Department indicates that the 

records may be destroyed, whichever comes first. Copies of flight logs for aircraft sold or 

disposed of must be retained. The carrier may forfeit its compensation for any claim that is 

not supported under the terms of this Order;
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4. We find that both Great Lakes Aviation, Ltd. and SkyWest Airlines continue to be fit, 

willing and able to operate as commuter and certificated carriers, respectively, and capable 

of providing reliable Essential Air Service at Laramie and Worland, Wyoming;

5. These dockets will remain open pending further Department action; and

6. We will serve copies of this Order on the Mayors and Airport Managers of Laramie and 

Worland, Wyoming, Wyoming Department of Transportation, Great Lakes Aviation, Ltd. 

and SkyWest Airlines.

By:

SUSAN L. KURLAND

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available at

http://www.regulations.gov
Appendix A

AREA MAP

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

 
 Appendix B

Page 1 of 2

Laramie – SkyWest Proposal
 Appendix B

Page 2 of 2

Worland Great Lakes Proposal
 Appendix C

Page 1 of 2

SkyWest Airlines

Essential Air Service to be Provided at Laramie, Wyoming

Effective Period: October 1, 2012 through September 30, 2014

Scheduled Service: 14 weekly round trips to Denver

Aircraft: 30-passenger Embraer EMB-120

Rate per Eligible Flight: $1,1461

Weekly Ceiling for each community: $32,0882

Note: 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 this rate, 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 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 service levels, the carrier may cease to provide service to that 

specific location without regards 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.

Subsidy contract 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 are not currently available for performance under this Order beyond September 30, 2012. The Government’s 

obligation for performance under this Order beyond September 30, 2012, is subject to the availability of appropriated 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 September 30, 2012, until funds are made available to the Department for 

performance. If funds are not made available for performance beyond September 30, 2012, the Department will provide 

notice in writing to the carrier.

All claims for payment must be submitted within 60 days of the last day of service provided under this Order.

 1 Annual compensation of $1,635,346 divided by 1,427 annual departures (28 weekly departures x 52 weeks x 98 

percent completion). 2 28 arrivals and departures per week multiplied by $1,146 per flight.
 Appendix C

Page 2 of 2

Great Lakes Aviation, Ltd.

Essential Air Service to be Provided at Worland, Wyoming

Effective Period: October 1, 2012 through September 30, 2014

Scheduled Service: 12 weekly one-stop round trips to Denver

Aircraft: 19-passenger Beechcraft 1900

Rate per Eligible Flight: $1,6251

Weekly Ceiling for each community: $39,0002

Note: 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 this rate, 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 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 service levels, the carrier may cease to provide service to that 

specific location without regards 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.

Subsidy contract 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 are not currently available for performance under this Order beyond September 30, 2012. The Government’s 

obligation for performance under this Order beyond September 30, 2012, is subject to the availability of appropriated 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 September 30, 2012, until funds are made available to the Department for 

performance. If funds are not made available for performance beyond September 30, 2012, the Department will provide 

notice in writing to the carrier.

All claims for payment must be submitted within 60 days of the last day of service provided under this Order.

 1 Annual compensation of $1,987,148 divided by 1,223 annual departures (24 weekly departures x 52 weeks x 98 

percent completion). 2 24 arrivals and departures per week multiplied by $1,625 per flight.