Order 2012

- 2

- 9 Served: February 14, 2012



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 1 4 th day of February, 2012

Essential Air Service at

ALTOONA, PENNSYLVANIA JOHNSTOWN, PENNSYLVANIA

Under 49 U.S.C. 41731 et seq

. DOCKET DOT

- OST

- 2 002

- 11446

DOCKET DOT

- OST

- 2002

- 11451



### ORDER REQUESTING PROPOSALS

Summary
By this O rder, the Departme nt is requesting proposals from airlines interested in providing

Essential Air S ervice (EAS) at Altoona and Johnstown, Pennsylvania , for a new term beginning July 1, 2012

, with or without subsidy. Pr oposals are due by March 14

, 2012 . (See Appendix A for a map.)

Background
By Order 2010

- 5

- 10

, May 10, 2010 , the Department selected Colgan Air, Inc. operating as United Express (Colgan)

, to pr ovide EAS at Altoona and Johnstown with three round trips each weekday and weekend (18 a week), with a mix of nonstop and one

- stop service over an

Altoona

- Johnstown

- Washington Dulles or Johnstown

- Altoona

- Washington Dulles routing using 34

- seat Saab 340 aircraft for a combined annual subsidy of $3,348,294 from July 1, 2010 through June 30, 2012.

Request for Proposals

A ir carriers should file their pr oposals no later than March 14

, 2012 . After that date, our staff

will docket the proposals, thereby making them public, and shortly afterwards will provide a summary of the proposals to the communities and ask them for their final comments. We will give full consideration to all proposals filed in a timely manner.

Interested air carriers should prepare their proposals with every expectation that their initial proposal will also be their final and only proposal. We retain the discretion to negotiate- 2

-

proposals with air carriers when we deem it desirable. We also retain the discretion to reject outright all unreasonable or unrealistic proposals and solicit a new round of proposals.

Ai r carriers proposals should be submitted to the Department with all materials merged into a single document. In addition, because the document will be published on www.regulations.gov

, each page should be formatted to be viewed online.

We are here providing interested air carriers with basic information to serve as guidance when they prepare their proposals, but we wi ll not prescribe an exact format. We expect proposals to adequately describe the service being proposed and the annual amount of subsidy being requested. The applica nts can make their own judgments as to the level of detail they wish to present. H owever, they might want to include proposed schedules as well as supporting data for their subsidy requests, such as projected block hours, revenues and expenses. We strong ly encourage clear, well

- documented proposals that will facilitate their evaluation by the affected community and the Department. 1

Air carriers are also welcome to propose more than one option, if they choose. T hey need not limit themselves to those requirements if they envision other, potentially more attractive service possibilities

-- different hubs, frequency or equipment, for example

-- with subsidy requirements that remain competitive. The community and ai r carriers are encouraged to work together in advance of the due date for proposals to craft a service pattern that is desirable to

the communit y and meets the operational needs of the airline s

.

Proposals should provide sufficient capacity to accommodate historical levels of traffic. In order to assist carriers in developing traffic and revenue projections for their proposals, we have provided a summar y of historical passengers in Appendix B. During year ended September 30, 2011, Altoona averaged 14 enpl anements per day and Johnstown, 26. W e expect service levels that are c o mparable with what the community currently receive s , with

service to Washington Dulles, Philadelphia, Pittsburgh, Cleveland, Detroit, or any large or

medium hub that offers access to the national air transportation system utilizing twin

- engine

aircraft

. If air carriers choose to serve both communities on shared flights, we expect proposals consisting of three round trips weekdays and weekends (18 a week) with 30 to 50

- seat aircraft,

o r four round trips (2 4 a week) with 19

- seat aircraft. For proposals with 8/9

- seat aircraft, we expect four nonstop round trips a day (24 a week)

. 2 Should the communities agree to single

engine aircraft, in effect waiving their right t o twin

- engine aircra ft, we would cons ider the waiver to apply only for the length of the term of the air carrier

- selection at hand, i.e

. , we would not assume that the communities would waive their rights for all time. As always, we

1 In selecting a carrier to provide subsidized EAS , 49 U.S.C. 41733(c)(1) directs us to consider four factors: (1) service reliability; (2) contractual and marketing arrangements with a larger air carrier at the hub; (3) interline arrangements with a larger air carrier at the hub; and (4) community views. In addition, the Consolidated Appropriations Act, 2008, Public Law 110

- 161 , provides that when selecting a n air carrier to provide EAS, the Department may consider the relative subsidy requirements, thus codifying a factor that we have considered

since t he inception of the program. Interested air carriers should also be aware that our general provisions governing EAS will be included in the selection O rder as part of our authorization of subsidy for the selected service. Appendix C of this Order contain s those general provisions.

2 Previously, most EAS communities were entitled to service with 15

- seat or larger aircraft. However, in the Department’s FY2012 appropriation (Consolidated and Further Continuing Appropriations Act, P.L. 112

- 55,
November 18, 2011), Congress repealed the 15

- seat guarantee, although communities are still entitled to service

with twin

- engine aircraft.- 3

-

will formally solicit the communites’ views on any service options we receive before making a long

- term air carrier selection decision.

Other Carrier Requirements The Department is responsible for implementing various Federal statutes governing lobbying activities, drug

- free workplaces and n ondiscrimination. 3 Consequently, all air carriers receiving Federa l subsidy to support EAS must certify that they are in compliance with Department regulations regarding drug

- free workplaces and nondiscrimination, and those air

carriers whose subsidies ex ceed $100,000 over the life of the rate term must also certify that they are in compliance with the regulations governing lobbying activities. All air carriers that plan to submit proposals involving subsidy should submit the required certifications along with their proposals. Interested air carriers requiring more detailed information regarding these requirements, as well as copies of the certifications, should contact the Office of Aviation Analysis at (202) 366

- 5903. The Department is prohibited from paying subsidy to air carriers

that do not submit these documents. 4

Community and State Comments Civic officials are welcome to submit comments on the proposals at any time. As noted earlier, we will provide a summary of the proposals to the civic partie s and ask them to submit their final comments shortly after March 14 , 2012 , the due date for carrier proposals.

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

- delegated to the Director, Office of Aviation Analysis.

ACCORDINGLY, 1. We request that air carrier s interested in providing Essential Air S ervice at Altoona and /or Johnstown, Pennsylvania

, submit their proposals, with or without subsidy requests, no later

than March 14 , 2012 . The proposals should be emailed to: EAS@dot.gov with the title “Proposal to Provide Essential Air Service at Altoona and /or Johnstown, Pennsylvania ; ” 5

2. These docket s will remain open until further O rder of the Department; and

3 The regulations applicable to these areas are: (1) 49 CFR Part 20

– New restrictions on lobbying; (2) 49 CFR

Part 21

– Nondisc rimination 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 Federal 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 (gr ants).

4 The certifications are also available on the web at http://ostpxweb.dot.gov/aviation/index.html.

5 Questions regarding filings in response to this Order should be directed to Michael Martin at 202

- 366

- 6494, or

via email at michael.f.martin@dot.gov

.- 4

-

3. The Department will serve a copy of this O rder on the M ayor s and Airport M anager s of Altoona and Johnstown, Pennsylvania

, Colgan Air, Inc.

, and t he service list for these Docket s

. P ersons entitled to petition the Department for review of this Order under the Department’s

Aviation Eco nomic Regulations, 14 CFR 385.50, must file such petitions within ten (10) days

after the date of service of this Order

.

Thi s 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 on line at www.regulations.gov

### Appendix A



## Area Map

### Appendix B Page 1 of 2

Historical Origin

- Destination Plane Traffic 1



### Altoona, Pennsylvania

Quarter Year Deplanements Enplanements Total

Traffic Enplanements per Day

4 2008 2,293 2,401 4,694 30

1 2009 1,871 1,944 3,815 25

2 2009 1,680 1,709 3,389 22

3 2009 1,449 1,426 2,875 18

Annual

Totals 7,293 7,480 14,773 24

4 2009 1,388 1,351 2,739 17

1 2010 1,078 1,014 2,092 14

2 2010 884 939 1,823 12

3 2010 1,263 1,148 2,411 15

Annual

Totals 4,613 4,452 9,065 14

4 2010 1,349 1,194 2,543 16

1 2011 769 745 1,514 10

2 2011 1,184 1,100 2,284 15

3 2011 1,195 1,157 2,352 15

Annual

Totals 4,497 4,196 8,693 14

1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T

- 1 00

.

### APPENDIX B Page 2 of 2

Historical Origin

- Destination Plane Traffic 1



### Johnstown, Pennsylvania

Quarter Year Deplanements Enplanements Total

Traffic Enplanements per Day

4 2008 1,608 1,517 3,125 20

1 2009 1,322 1,500 2,822 18

2 2009 2,235 2,237 4,472 29

3 2009 2,273 2,252 4,525 29

Annual

Totals 7,438 7,506 14,944 24

4 2009 2,000 1,967 3,967 25

1 2010 1,392 1,422 2,814 18

2 2010 2,212 2,463 4,675 30

3 2010 2,517 2,437 4,954 31

Annual

Totals 8,121 8,289 16,410 26

4 2010 2,117 2,129 4,246 27

1 2011 1,379 1,536 2,915 19

2 2011 2,296 2,325 4,621 30

3 2011 2,132 2,124 4,256 27

Annual

Totals 7,924 8,114 16,038 26

1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T

- 1 00

.

### Appendix C

Example of General Terms and Conditions for Essential Air Service

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 O rder, 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 co mpleted, 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 writt en 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 oper ated; 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 me t 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 locati on 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 pa ragraph.

Funds are not currently available for performance under this solicitation beyond [DATE] . The Department’s obligation for performance under this soli citation beyond [DATE] , is contingent upon 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 [DATE] , until funds are made availa ble to the Department for performance. If funds are not made available for performance beyond [DATE] , the carrier will receive notice in writing by the Department.

All claims for payment must be submitted within 60 days of the last day of service provide d

under this Order

.