Order: 2010-9-9

 Served: September 8, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 8

th of September, 2010

Essential Air Service at

JOPLIN, MISSOURI

FORT LEONARD WOOD, MISSOURI

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

 Docket DOT-OST-2006-23932

 Docket DOT-OST-1996-1167

ORDER SELECTING CARRIERS

Summary

By this order, the Department is selecting Executive Airlines d/b/a American Eagle Airlines 

(American Eagle) to provide essential air service (EAS) at Joplin, Missouri, for an annual 

subsidy of $2,778,756, for a two-year period beginning when the carrier inaugurates service. 

The Department is selecting Hyannis Air Service, Inc. d/b/a Cape Air (Cape Air) to provide EAS 

at Fort Leonard Wood, for an annual subsidy of $1,478,102, also for a two-year period beginning 

when the carrier inaugurates service. An additional $959,664 in annual subsidy may be incurred 

when all-cargo flights are used to transport luggage to/from Fort Leonard Wood.1

Background

In response to Great Lakes Aviation’s notice of intent to terminate its scheduled air service at 

Joplin and Fort Leonard Wood, the Department issued Order 2010-6-9, June 8, 2010, to solicit 

proposals from all interested air carriers to provide EAS at Joplin and/or Fort Leonard Wood.

Proposals

In response to that order, we received proposals from four carriers: Alaska Juneau Aeronautics, 

Inc. d/b/a SeaPort Airlines (SeaPort), Hyannis Air Service, Inc. d/b/a Cape Air (Cape Air), 

Executive Airlines d/b/a American Eagle Airlines (American Eagle), and Multi-Aero, Inc. d/b/a 

Air Choice One (Air Choice One).

 

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

SeaPort proposes to serve Fort Leonard Wood with two daily nonstop round trips to St. Louis 

(14 total per week) and two daily nonstop round trips to Kansas City (14 total per week), 

utilizing 9-passenger Pilatus PC-12 aircraft. Its first year subsidy request is $1,838,255, and its 

second year subsidy request is $1,888,509.

Cape Air

Cape Air has proposed service from Fort Leonard Wood to St. Louis using 9-passenger Cessna 

402 aircraft. It proposes to operate four nonstop round trips each day (28 total per week) to St. 

Louis for an annual subsidy of $1,478,102. Depending on the community’s luggage demand, 

Cape Air proposes a combination of passenger and freighter service. The freighter service would 

only be used when required. As an example, if 70% of departures required the freighter service, 

it would result in an additional $959,664 in annual subsidy. 

American Eagle

American Eagle proposes to operate two daily nonstop round trips (14 total per week) from 

Joplin to Dallas/Fort Worth International Airport, for an annual subsidy rate of $2,778,756. 

American Eagle proposes to operate 66-passenger ATR-72 aircraft. American Eagle requests the 

ability to substitute, when needed, a 44-passenger Embraer 140 or a 50-passenger Embraer 145 

aircraft, to be reimbursed at the same subsidy rate. American Eagle also requested that the DOT 

and Joplin waive the right to hold-in upon issuance of a 120 day notice to terminate service.

Air Choice One

Air Choice One has proposed service to Joplin and Fort Leonard Wood. It would operate 9-

passenger Cessna Caravan aircraft to St. Louis under all of its proposals. There are two options 

for Joplin - four nonstop round trips each weekday and weekend (24 total per week) for an 

annual subsidy of $2,054,483, or five nonstop round trips each weekday and weekend (30 total 

per week), for an annual subsidy of $2,442,623. There are three options for Fort Leonard Wood 

– four nonstop round trips each weekday and weekend (24 total per week) for an annual subsidy

of $1,704,203, five nonstop round trips each weekday and weekend (30 total per week), for an 

annual subsidy of $1,960,797, or six nonstop round trips each weekday and weekend (36 total 

per week), for an annual subsidy of 2,263,853.

The complete proposals of the four carriers may be accessed online at: 

http://www.regulations.gov/ by entering DOT-OST-2006-23932 (Joplin) or DOT-OST-1996-

1167 (Fort Leonard Wood), in the “Enter Keyword or ID” field.

Community and State Comments

On July 26, 2010, we requested community comments regarding the carrier selection at Joplin 

and Fort Leonard Wood. A summary of the comments received follows.

Joplin

In a letter from the Airport Manager of Joplin Regional Airport, he states that the Joplin City

Council “unanimously endorses the bid of American Eagle” providing two round trips per day to 
Dallas/Fort Worth. The letter acknowledges American Eagle’s request to the Department to be 

allowed to exit on 120 days notice and the community has no objections.

Fort Leonard Wood

We received a joint letter from the City of Waynesville and the City of Saint Robert stating the 

communities “were pleased by the caliber of the companies submitting proposals” and based on 

the review of the proposals and “discussions with Fort Leonard Wood officials, the Cities of 

Waynesville and St. Robert recommend the proposal submitted by Cape Air.” The communities 

told us that Cape Air’s proposal offered many advantages including an attractive proposed fare 

structure, on-time performance and dependability record, the ability to add aircraft to meet 

additional demand, and the capability to offer a dedicated aircraft for cargo to meet baggage 

requirement of military passengers. Airport Board members stated appreciation for the proposal 

and community involvement from Air Choice One. The letter also stated that the Board felt the 

facilities could not support the non-TSA model offered by SeaPort.

The Department also received a letter from the Chief of the Transportation Division at Fort 

Leonard Wood. It states that after reviewing and hearing proposals submitted by SeaPort, Air 

Choice One, and Cape Air, the Fort Leonard Wood Installation recommends Cape Air. Among 

the proposal’s attractive features were Cape Air’s code share with American Airlines, interline eticketing and baggage agreements with other airlines at St. Louis, comparable rates, and their 

ability to send more aircraft, if needed, for passengers and/or baggage. It noted Air Choice 

One’s comfortable and newer aircraft and lower basic prices, but was concerned about the 

inability to move more than eight persons at a time and that the carrier only has an agreement 

with United Airlines, causing personnel to claim baggage and re-ticket and re-check baggage on 

all airlines other than United. 

Other letters

In a July 27 letter to the Department, American Airlines (American) “enthusiastically supports” 

Cape Air’s proposal to serve Fort Leonard Wood. American expects to expand its existing 

codeshare agreement with Cape Air into the Fort Leonard Wood market, “providing seamless 

booking and travel on American Airlines’ worldwide network.”

Decision

The decision at Joplin is straightforward. American Eagle’s proposal is the only one that meets 

the statutory requirement for 15-seat or larger aircraft, provides ticketing and baggage 

arrangements, and offers a large number of connecting opportunities to the national air 

transportation system through American Airlines’ Dallas/Fort Worth hub. Further, American 

Eagle’s proposal is strongly supported by the community. The subsidy requested is reasonable 

for the service provided.

At Fort Leonard Wood, all three carriers propose 9-seat aircraft. However, only Cape Air’s 

proposal offers interline ticketing and baggage agreements, including a code-share with 

American Airlines, and the communities of Waynesville and Saint Robert and the Fort Leonard 

Wood Installation fully support its proposal. Fort Leonard Wood is served through the 

Waynesville-St. Robert Regional Airport at Forney Field, a joint military/civilian use facility. 

Although citizens and visitors to the neighboring communities use the facility, a large number of
passengers using the airport are active-duty military personnel, and, in general, their luggage 

demands are larger (in terms of volume and weight) and their travel may be extremely timesensitive, more so than the general population of airline passengers. Cape Air’s proposal 

addresses this unique situation by providing freighter service when the greater luggage demands 

of Fort Leonard Wood passengers prohibit the carrier from transporting all passengers and 

baggage on a single flight. Finally, Cape Air has demonstrated reliability at other communities it

serves under the EAS program.

We shall make these selections at Joplin and Fort Leonard Wood contingent upon the 

Department’s receiving properly executed certifications from American Eagle and Cape Air, that 

each carrier is in compliance with the Department’s regulations regarding drug-free workplaces 

and nondiscrimination, as well as the regulations concerning lobbying activities.

As a final matter, we expect Great Lakes to work together with American Eagle and Cape Air to

ensure a smooth transition in service at the respective communities. In that regard, before Great 

Lakes suspends its service at Joplin and Fort Leonard Wood, we expect it to contact all 

passengers holding reservations for travel after the final date of service, to inform them of the 

change in service, and to assist them in arranging alternate transportation or to provide a refund 

of the ticket price, without penalty, if requested.

Carrier Fitness

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

service before we may subsidize it to provide essential air service. American Eagle and Cape 

Air are subject to the Department’s continuing fitness requirements, and no information has 

come to our attention that would cause us to question either carrier's fitness at this time. We 

have contacted the Federal Aviation Administration, and it has raised no concerns that would 

negatively affect our fitness finding. We therefore conclude that the carriers 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 Executive Airlines d/b/a American Eagle Airlines to provide essential air service at 

Joplin, Missouri;

2. We set the final rate of compensation for Executive Airlines d/b/a American Eagle for the 

provision of essential air service at Joplin, Missouri, as described in Appendix C;

3. We direct Executive Airlines d/b/a American Eagle 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 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;
4. We find that Executive Airlines d/b/a American Eagle continues to be fit, willing and able to 

operate as a certificated carrier and capable of providing reliable essential air service at Joplin, 

Missouri;

5. Under our authority in 49 U.S.C. 40109, we will allow Executive Airlines d/b/a American 

Eagle to cease operations at Joplin on 120 days notice; 

6. We select Hyannis Air Service, Inc. d/b/a Cape Air to provide essential air service at Fort 

Leonard Wood, Missouri;

7. We set the final rate of compensation for Hyannis Air Service, Inc. d/b/a Cape Air for the 

provision of essential air service at Fort Leonard Wood, Missouri, as described in Appendix C;

8. We direct Hyannis Air Service, Inc. d/b/a Cape Air 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 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;

9. We find that Hyannis Air Service, Inc. d/b/a Cape Air continues to be fit, willing and able to 

operate as a commuter carrier and capable of providing reliable essential air service at Fort 

Leonard Wood, Missouri;

10. These dockets will remain open until further order of the Department; and

11. We will serve copies of this order on the mayors of Joplin, Waynesville, and Saint Robert, 

Missouri, personnel at Fort Leonard Wood, and the airport managers of Joplin Regional Airport 

and Waynesville-St. Robert Regional Airport, Executive Airlines d/b/a American Eagle, Hyannis 

Air Service, Inc. d/b/a Cape Air, Alaska Juneau Aeronautics, Inc. d/b/a SeaPort Airlines, and 

Multi-Aero, Inc. d/b/a Air Choice One.

By:

SUSAN L. KURLAND

Assistant Secretary

for Aviation and International Affairs

(SEAL)

An electronic version of this document is available on the Internet at http://www.regulations.gov
Appendix A

AREA MAP

This map is provided by Sabre® AirVisionTM Profit Essentials and is being used with express permission of the copyright holder, 

Sabre Airline Solutions®.
Appendix B

Page 1 of 2

Executive Airlines d/b/a American Eagle Airlines

Proposal to serve Joplin
Appendix B

Page 2 of 2

Hyannis Air Service, Inc. d/b/a Cape Air

Proposal to serve Fort Leonard Wood
Appendix C

Page 1 of 2

Executive Airlines d/b/a American Eagle Airlines

Essential Air Service to be Provided at Joplin, Missouri

Effective Period: Two years beginning when American Eagle inaugurates service, through the 

end of the 24th month thereafter

Scheduled Service: 14 weekly round trips to Dallas/Fort Worth International Airport

Intermediate stops and upline service: Service must be nonstop

Aircraft: ATR-72, 66 seats; Embraer 140, 44 seats; or Embraer 145, 50 seats

Rate per Eligible Flight: $1,9621

Weekly Ceiling: $54,9362

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 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 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.

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 are not currently available for performance under this order beyond September 30, 2010. The Government’s 

obligation for performance under this order beyond September 30, 2010, 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, 2010, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond September 30, 2010, 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 $2,778,756, divided by 1,416 annual departures (365 service days x 4 flights per service 

day x 97 percent completion).

2 28 flights per week multiplied by $1,962 per flight.
Appendix C

Page 2 of 2

Hyannis Air Service, Inc. d/b/a Cape Air

Essential Air Service to be Provided at Fort Leonard Wood, Missouri

Effective Period: Two years beginning when Cape Air inaugurates service, through the end of 

the 24th month thereafter

Scheduled Service: 28 weekly nonstop round trips to St. Louis

Intermediate stops and upline service: Service must be nonstop

Aircraft: Cessna 402, 9 seats or all-cargo

Rate per Eligible Flight: $5061 (passenger); $4702 (freighter – as needed)

Weekly Ceiling: $28,3363 (passenger); $18,800 (freighter)4

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 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 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.

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 are not currently available for performance under this order beyond September 30, 2010. The Government’s 

obligation for performance under this order beyond September 30, 2010, 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, 2010, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond September 30, 2010, 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 $1,478,102 divided by 2,920 annual departures (365 service days x 8 flights per service 

day). Assumes 100 percent completion.

2 Per carrier proposal. See Appendix B, Page 2.

3 56 flights per week multiplied by $506 per flight.

4 40 flights per week multiplied by $470 per flight.