Order: 20 1 2

- 2

- 16
Served: February 23 , 20 1 2



### UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation
on the 23 rd day of February , 20 1 2

Essential Air Service at

BECKLEY, WEST VIRGINIA CLARKSBURG/FAIRMONT, WEST VIRGINIA MORGANTOWN, WEST VIRGINIA

Under 49 U.S.C. 41731 et seq

. Docket DOT

- OST

- 1997

- 2761
Docket DOT

- OST

- 2005

- 2073 6
Docket DOT

- OST

- 2005

- 2073 5



### ORDER REQUESTING PROPOSALS

Summary By this Order, the Department is requesting proposals from airlines interested in providing Essential Air Service (EAS) at Beckley, Clarksburg/Fairmont (Clarksburg) , and/or Morgantown, West Virginia , for a new term beginning August 1, 2012 , with or without subsidy. Proposals are due by April 3, 2012 . (See Appendix A for a map.)

Background By Order 2010

- 6

- 25 , May 10, 2010, the Department selected Colgan Air, Inc.

, operating as United Express (Colgan), to provide EAS at Beckley with t wo nonstop or one

- stop round trips each weekday and weekend (1 2 total per week), for an annual subsidy of $2,313,457. That Order also selected Colgan to provide Clarksburg and Morgantown with three round trips each weekday and weekend (18 total per week) o ve r a Clarksburg

- Morgantown

- Washington Dulles or Morgantown

- Clarksburg

- Washington Dulles routing, for a combined annual subsidy of $ 2,976,438

. All three communities are served with 34

- passenger Saab 340 aircraft.

Request for Proposals
Air carriers should f ile their proposals no later than April 3, 2012 . After that date, we 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

g ive full consideration to all proposals filed in a timely manner.- 2

-

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 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.

Air carrier 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 will 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. However, 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. They need not limit themselves to those requi rements if they envision other, potentially more attractive service possibilities

-- different hubs, frequency or equipment, or length of service terms

, for example

-- with subsidy requirements that remain competitive. The community and air carriers are

e ncouraged to work together in advance of the due date for proposals to craft a service pattern that is desirable to the community and meets the operational needs of the airlines.

Proposals should provide sufficient capacity to accommodate historical level s of traffic. In order to assist carriers in developing traffic and revenue projections for their proposals, we have provided a summary of historical passengers in Appendix B. During year ended December 31

, 2011, Beckley averaged 9.4 enplanements per day , Clarksburg 18.6 , and Morgantown 33.1 . We expect service levels that are comparable with what the communit ies currently receive, with service to Washington Dulles, Charlotte, Cleveland, Detroit, or any large or medium hub that
offers access to the nation al air transportation system utilizing twin

- engine aircraft. For Clarksburg and Morgantown, i f air carriers propose service with shared flights, similar to the current service pattern, we expect proposals consisting of three round trips each weekday and

w eekend (18 per week) with 30 to 50

- seat aircraft, or four round trips each weekday and
weekend (24 per week) with 19

- seat aircraft. If unlinked, nonstop service is proposed, we expect proposals consisting of two nonstop round trips each weekday and weeken d (12 per week) with
34

- seat or larger aircraft or three nonstop round trips each weekday and weekend (18 per week)
with 19

- seat aircraft. For proposals with 8/9

- seat aircraft, we expect four nonstop round trips

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 t he 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 co nsider the relative subsidy requirements, thus codifying a factor that we have considered since the 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 contains those general provisions.- 3

-

each weekday and weekend (24 per week) . At Beckley, we expect proposals for two nonstop or

one

- stop round trips a day (12 per week) with 19

- seat or larger aircraft and three nonstop round trips each weekday and weekend (18 pe r week) with 8/9

- seat aircraft

. 2 Should the communities agree to single

- engine aircraft, in effect waiving their right to twin

- engine aircraft, we would consider 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 will formally solicit the communities’ views on any service options we receive before making a long

- term air carrier selection decision.

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

- free workplaces and nondiscrimination. 3 Consequently, all air carriers receiving Federal subsidy to support EAS must certify that they are in compliance with Department

reg ulations regarding drug

- free workplaces and nondiscrimination, and those air carriers whose subsidies exceed $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 certification s, 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 parties and ask them to submit their final comments shortly after April 3, 2012 , the due date for carrier proposals.

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

- delegated to the Director, Office of Aviation Analysis.

ACCORDINGLY, 1. We request that air carriers interested in providing Essential Air Service at Beckley, Clarksburg/Fairmont and/or Morgantown, West Virginia, submit t heir proposals, with or without subsidy requests, no later than April 3, 2012 . The proposals should be emailed to:

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 The regulations applica ble to these areas are: (1) 49 CFR Part 20

– New restrictions on lobbying; (2) 49 CFR
Part 21

– Nondiscrimination 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 (grants).

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

-

EAS@dot.gov with the title “Proposal to Provide EAS at Beckley, Clarksburg, and/or Morgantown, WV;” 5

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

3. The Department will serve a copy of this Order on the mayors of Beckley, Clarksburg, Fairmont, and Morgantown, West Virginia, the airport managers at Raleigh County Memorial
Air port (Beckley), North Central West Virginia Airport (Clarksburg/Fairmont), and Morgantown Municipal Airport, Colgan Air, Inc., and the service list for these Dockets.

Persons entitled to petition the Department for review of this Order under the Departmen t’s Aviation Economic Regulations, 14 CFR 385.50, must file such petitions within ten (10) 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 online at www.regulations.gov

5 Questions regarding filings in response to this Order should be directed to Kevin Schlemmer at 202

- 366

- 3176, or
via email at kevin.schlemmer@dot.gov

.Appendix A



## AREA MAPAppendix B Page 1 of 3

Traffic History *

Beckley, WV (BKW)

Year Quarter Stn Deplanements Enplanements Total traffic

2009 1 BKW 435 665 1,100

2009 2 BKW 564 733 1,297

2009 3 BKW 580 589 1,169

2009 4 BKW 594 635 1,229
2,173 2,622 4,795

2010 1 BKW 406 438 844

2010 2 BKW 511 673 1,184

2010 3 BKW 685 648 1,333

2010 4 BKW 537 551 1,088
2,139 2,310 4,449

2011 1 BKW 410 395 805

2011 2 BKW 829 819 1,648

2011 3 BKW 990 1,002 1,992

2011 4 BKW 716 748 1,464
2,945 2,964 5,909 Annual totals

Annual totals Annual totals

Average daily enplanements at Beckley for CY2011

– 9.4 **

*Source

– T

- 100 Market Report, Passengers in Scheduled Passenger Service, includes traffic for Colgan Air, Inc. traffic only

**Average daily enplanements is total traffic for the most recent 12

- month period ( 5,909 ) divided by 313 service days per year, divided by 2

.Appendix B Page 2 of 3

Traffic History*

Clarksburg/Fairmont, WV (CKB)

Year Quarter Stn Deplanements Enplanements Total traffic

2009 1 CKB 1,132 1,823 2,955

2009 2 CKB 1,605 1,851 3,456

2009 3 CKB 1,884 1,837 3,721

2009 4 CKB 1,445 1,475 2,920
6,066 6,986 13,052

2010 1 CKB 1,127 1,243 2,370

2010 2 CKB 1,107 1,595 2,702

2010 3 CKB 1,338 1,390 2,728

2010 4 CKB 1,407 2,030 3,437
4,979 6,258 11,237

2011 1 CKB 1,063 1,215 2,278

2011 2 CKB 1,337 1,545 2,882

2011 3 CKB 1,670 1,718 3,388

2011 4 CKB 1,520 1,600 3,120
5,590 6,078 11,668 Annual totals Annual totals

A verage daily enplanements at Clarksburg/Fairmont for CY2011

– 18.6 **

* Source

– T

- 100 Market Report, Passengers in Scheduled Passenger Service, includes traffic for Colgan Air, Inc. traffic only

.

**Average daily enplanemen ts is total traffic for the most recent 12

- month period ( 1 1,668 ), divided by 313 service days per year , divided by 2

.Appendix B Page 3 of 3

Traffic History*

Morgantown, WV (MGW)

Year Quarter Stn Deplanements Enplanements Total traffic

2009 1 MGW 2,176 2,708 4,884

2009 2 MGW 2,547 2,781 5,328

2009 3 MGW 2,668 2,462 5,130

2009 4 MGW 2,457 2,640 5,097
9,848 10,591 20,439

2010 1 MGW 2,230 2,178 4,408

2010 2 MGW 2,467 2,579 5,046

2010 3 MGW 2,610 2,424 5,034

2010 4 MGW 2,928 2,937 5,865
10,235 10,118 20,353

2011 1 MGW 2,272 2,112 4,384

2011 2 MGW 2,473 2,733 5,206

2011 3 MGW 2,971 2,711 5,682

2011 4 MGW 2,632 2,786 5,418
10,348 10,342 20,690 Annual totals

Annual totals

Annual totals

Average daily enplanements at Morgantown for CY2011

– 33.1

*Source

– T

- 100 Market Report, Passengers in Scheduled Passenger Service, includes traffic for Colgan Air, Inc. traffic only

.

**Average daily enplanements is total traffic for the most recent 12

- month period ( 20, 690 ), divided by 313 service days per year, divided by 2

.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 availab le 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 provided under this Order

.