Order 20 1 4

- 2

- 18

Served: February 25

, 20 1 4



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 25 t h day of February , 20 1 4

CLARIFYING ORDER

By Order 2013

- 11

- 19, issued November 25, 2013, we sel ected SkyWest Airlines (SkyWest) to provide subsidized Essential Air Service (EAS) at Pueblo, Colorado, for the two

- year period from February 1, 2014

, through January 31, 2016. B y Order 2013

- 12

- 5 , issued on December 6, 2013, we selected SkyWest to provide subsidized EAS at Moab and Vernal, Utah, for the two

- year period from January 1, 2014

, through December 31, 2015

.

Subsequently, SkyWest contacted the Department to inform us that they would inaugurate

service at Pueblo on April 1, 2014

, and at Moab and V ernal on March 2, 2014. 1 We will

therefor e clarify the effective period of SkyWest’s two

- year selection at Moab and Vernal to be from March 2, 2014, through March 31, 2016, and at Pueblo from April 1, 2014, through March 31, 2016. 2

This O rder is issued under authority delegated in 14 CFR Part 385.12(k)

.

ACCORDINGLY,

1. We amend the effective period of Order 2013

- 11

- 19, Appendix B , Page 1 (included here as Appendix A, Page 1) , as follows: “April 1, 2014, through March 31, 2016 ; ”

1 Under normal circumstances, we would also cla rify the hold

- in rate and period for the incumbent carrier.
However, Great Lakes Airlines, the incumbent carrier at all three communities, ceased all of its operations at Moab and Vernal effective January 21, 2014, and at Pueblo on January 31, 2014.

2 In the appendices, we are also clarifying the availability of funding through September 30, 2014.

Essential Air Service at :

PUEBLO, COLORADO VERNAL, UTAH MOAB, UTAH

Under 49 U.S.C. 41731 et seq

. DOT

- OST

- 1999

- 6589
DOT

- OST

- 1997

- 2706
DOT

- OST

- 1997

- 2827- 2

-

2. We amend the effe ctive period of Order 2013

- 12

- 5, Appendix C , Page 1 (included here as Appendix A, Page 1 ) , as follows: “March 2, 2014, through March 31, 2016 ; ”

3. We amend the effective period of Order 2013

- 12

- 5, Appendix C, Page 2 (included here as Appendix A, Page 2)

, as follows: “March 2, 2014, through March 31, 2016 ; ”

4. These dockets will remain open until further Order of the Department; and

5. We will serve a copy of this Order on the City Manager of Pueblo, the City Council of Pueblo, the Director of Aviation at Pueblo Memorial Airport, the mayors of Moab and Vernal, the airport managers of Canyonlands Fields ( Moab ) and Vernal Regional Airport

, Great Lakes Aviation, Ltd., and SkyWest Airlines.

Persons entitled to petition the Department for review of this ord er under the Department’s Aviation Economic 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 at: http://www.regulations.gov/APPENDIX A Page 1 of 3

SkyWest Airlines

Essenti al Air Service to be Provided at Pueblo, Colorado

DOT

- OST

- 1999

- 6589

Effective Period : April 1, 2014, through March 31, 2016

Scheduled Service : 12 weekly nonstop round trips to Denver International Airport

Aircraft : 30

- Seat Embraer 120 Rate per Eligible Flight: $ 1,421 1 Weekly Ceiling for each community : $ 34,104 2

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 servic e 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 explanat ion 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 co nformance 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 ro utes. 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 Departme nt 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 payment s 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 ce ase 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 constitu te a total or partial reduction or cessation of payment.

Funds may not be available for performance under this Order beyond March 18, 2014 . The Government’s obligation for performance under this Order beyond March 18, 2014 , 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 March 18, 2014 , until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond March 18, 2014 , 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 9 0 days of the l ast day of the month for which compensation is being 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.

1 Annual compensation of $1,737,732 divided by 1,2 23 annual departures (24 departures per week x 313 days x 98 percent completion).

2 24 arrivals and departure s per week multiplied by $1,421 per flight

.APPENDIX A Page 2 of 3

SkyWest Airlines
Essential Air Service to be Provid ed at Vernal, Utah
DOT

- OST

- 1997

- 2706

Effective Period: March 2 , 2014 through March 31, 2016

Scheduled Service: 12 weekly nonstop round trips to Salt Lake City

. Aircraft type: Embraer EMB

- 120 Brasilia (30 passenger seats). Annual compensation: $1,415,69 6 Subsidy Rate per Flight: $1,158 1 Weekly Ceiling: $27,792 2

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 serv ice 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 explan ation 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 fir st 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 Depart ment 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 payme nts 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 consti tute a total or partial reduction or cessation of payment.

Funds may not be available for performance under this Order beyond March 18, 2014 . The Government’s obligation for performance under this Order beyond March 18, 2014 , is subject to the availabili ty 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 March 18, 2014 , until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond March 18, 2014 , the Department will provide notice in writing to the carrier.

Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Department regulations, a s 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 9 0 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 31 st ; August claims must be submitted by November 30 th , and so on.

1 $1

, 415,696 annual compensation divided by 1,223 annual flights (24 weekly flights x 52 weeks x 98% completion factor).

2 $1,158 per flight x 24 weekly flights.APPENDIX A Page 3 of 3

SkyWest Airlines
Essential Air Service to be Prov ided at Moab , Utah
DOT

- OST

- 1997

- 2827

Effective Period: March 2 , 2014 through March 31, 2016

Scheduled Service: 12 weekly nonstop round trips to Salt Lake City

. Aircraft type: Embraer EMB

- 120 Brasilia (30 passenger seats). Annual compensation: $ 2,303,3 47 Subsidy Rate per Flight: $ 1, 883 1 Weekly Ceiling: $4 5,192 2

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 ser vice 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 expla nation 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 fi rst 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 Depar tment 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 paym ents 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 const itute a total or partial reduction or cessation of payment.

Funds may not be available for performance under this Order beyond March 18, 2014 . The Government’s obligation for performance under this Order beyond March 18, 2014 , is subject to the availabil ity 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 March 18, 2014 , until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond March 18, 2014 , 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 9 0 days of th e last day of the month for which compensation is being 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.

1 $2,303,347 annual compensation divided by 1,223 annual flights (24 weekly flights x 52 weeks x 98% completion factor).

2 $1,883 per flight x 24 weekly flights.