Order 2014-2-18

Served: February 25, 2014

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 25th day of February, 2014

CLARIFYING ORDER

By Order 2013-11-19, issued November 25, 2013, we selected 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. By 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 Vernal on March 2, 2014.1 We will 

therefore 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 Order 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 clarify 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 effective 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 order 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 

Essential 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: $1,4211

Weekly Ceiling for each community: $34,1042

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 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 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 complete, 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 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 constitute 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 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.

 1 Annual compensation of $1,737,732 divided by 1,223 annual departures (24 departures per week x 313 days x 98 

percent completion).

2 24 arrivals and departures per week multiplied by $1,421 per flight.
APPENDIX A

Page 2 of 3

SkyWest Airlines

Essential Air Service to be Provided 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: $1,415,696

Subsidy Rate per Flight: $1,1581

Weekly Ceiling: $27,7922

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 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 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 complete, 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 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 constitute 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 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.

 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 Provided 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: $2,303,347

Subsidy Rate per Flight: $1,8831

Weekly Ceiling: $45,1922

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 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 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 complete, 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 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 constitute 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 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.

 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.