Or der: 20 1 3

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- 4

Served : 

### May 2 , 2013

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 2 nd day of May , 201 3

Essential Air S ervice at

WEST YELLOWSTONE

, MONTANA

under 49 U.S.C. 41731 et seq. Docket DOT

- O ST

- 2003

- 14626

ORDER SELECTING CARRIER

Summary By this O rder

, the Department is re

- s electing SkyWest A irlines ( “SkyWest” ) to continue to provide E ssential A ir S ervice (EAS) at West Yellowstone

, Montana , at a n an nual subsidy rate of
$ 535,141

, for the next two summer season s from June 1 through September 30, 2013, and 2014

. 1

Background By Order 20 12

- 4

- 9

, April 6, 2012 , the Department selected SkyWest Airlines, Inc. d/b/a Delta Connection (SkyWest) to provide subsidized EAS at West Yellowstone for the 4

- month summer

season of 2012 at a subsidy rate of $ 389,412. Under that O rder, SkyWest provided 14 nonstop round trips per week to Salt Lake City International Airport (Salt Lake City) as Delta Connection, with 30

- seat Embraer Brasilia aircraft.

SkyWest’s proposal was for the summer 2012 season only, which was done in anticipation of West Yellowstone’s completion of the regulatory approval process to receive scheduled, commercial jet service, prior to the 2013 season. However, the appeal process has not been completed and SkyWest did not submit a jet proposal.

I n anticipation of the end of the rate term, the Department issued Order 2012

- 12

- 24

, December 31, 2012, solicit ing proposals to provide efficient EAS , with subsidy support if

necessary, at West Yellowstone

, for the next two summer season s

.

Proposal s I n response to that order, we received a proposal from only SkyWest, the incumbent

.

1 Su bsidy is calculated and distributed on a fiscal year basis, subject to the availability of funds.SkyWest proposes to continue its historical level of subsidized service 14 nonstop round trips per

week to Salt Lake City as Delta Connection for the summer seasons , from J une 1 through September 30, 201 3

, an d during the same months in 2014

, utilizing 30

- passenger Embraer

Brasilia aircraft for a subsidy of $ 535,141.

The Sky West proposal , as well as the entire d ocket, may be accessed online at http://www.regulations.gov/ by entering “DOT

- OST

- 2003

- 14626 .”

Community and State Comments

On February 12 , 201 3 , we requested co mmunity co mment s regarding the carrier selection at
West Yellowstone

.

In a February 27 , 201 3, letter to the Department, Mayor Jerry Johnson , Town of West Yellowstone (“the Town”) stated that the Town “supports the proposal submitted by SkyWest.” He also says the Town “has benefited from its re lationship with SkyWest Airlines since 1987 and appreciates the reliable and vita l service [the carrier] provides to West Yellowstone and the surrounding area.” The letter also mentions that “SkyWest has made notable efforts in the past to work with [West Yellowstone] by altering its flight schedule to better serve visitors.”

The D epartment also received a February 25, 2013, l etter from Mike Tooley

, Director, M ontana Department of Transportation (“MDT”)

, stating “ SkyWest Airlines has served this region for many years with excellent service” and that MDT “supports the proposal from S kyWest Airlines and recommends the Town of West Yellowstone to continue with SkyWest for the 2013 and

2014 seasons.”

Decision This case is very straightforward. S kyWest is the only applicant and has served West

Yellowstone for many years and continues to provide them with reliable EAS

. The c ommunity fully supports SkyWest

, and we find that its subsidy request is reasonable. Therefore, we will reselect SkyWest operating with 30

- seat Embraer Brasilia aircraft, to provide service fro m West Yellowstone to Salt Lake City, for the 201 3 and 2014 summer season s , at an annual subsidy rate of $ 5 35,141.

We shall make SkyWest’s selection at West Yellowstone contingent upon the Department’s receiving properly executed certifications from SkyWe st that it is in compliance with the Department’s regulations regarding drug

- free workplaces and nondiscrimination, as well as the regulations governing lobbying activities.

Carrier Fitness

49 U.S.C. § 41737(b) and 417 3 8 require that we find an air carrier fit, willing, and able to provide reliable service before we may subsidize it to provide essential air service

. SkyWest is

sub j ect to the Department’s continuing fitness requirements, and no information has come to our attention that would cause us to question the carrier's fitness at this time. We have contacted the Federal Aviation Administration, and it has raised no concerns that would negatively affect ourfitness finding. We therefore conclude that the carrier r emains fit to conduct the operations proposed here.

This O rder is issued under authority delegated in 49 CFR Part 1.25a(b)

.

ACCORDINGLY,

1. We select SkyWest A irlines to provide E ssential A ir S ervice at West Yellowstone

, Montana ;

2 . We set the final rate of compensation for SkyWest Airlines for the provision of essential air

service at West Yellowstone

, Montana , as described in Appendix C ;

3 . We direct SkyWest Airlines to retain all books, records, and other source and summary

do cumentation 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 from the servi ce date of this order 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 O rder;

4 . We find that SkyWest A irlines continue s to be fit, willing and able to operate as a certificated

carrier and capable of providing reliable essential air service at West Yellowstone

, Montana ;

5 . Th is docket will remain open until further order of the Department; and

6 . We will serve copies of this O rder on the Mayor and Operations Manager of the Town of

West Yellowstone

, the Montana Department of Transportation, Aeronautics Division, and SkyWest A ir lines.

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.govAppendix A



## AREA MAPAppendix BAppendix C

SkyWest A irlines

Essential Air Service to be Provided at West Yellowstone

, Montana

Effective Period : June 1 through September 30 , 20 1 3 and 2014

Scheduled Service : 1 4 nonstop round trips t o Salt Lake City International Airport each week

Aircraft : Embraer Brasilia (EMB 120) , 30 seats
Rate per Eligible Flight: $ 1,120 1
Weekly Ceilin g : $ 31,360 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 O rder, including the service plans outlined in the O rder 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 oper ate its flights in full conformance with the O rder 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 O rder 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 p rovide 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 o r 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 ly , t erminates or reduces payments for service or changes service requirements at a specific location provided for under this O rder, then, at the end of the period for which the Department does make payments in the stipulated amounts or at the stipulated servic e 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 may not be available for performance under this O rder beyond September 30, 201 3

. The Governmen t’s obligation for performance under this O rder beyond September 30, 201 3

, 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 O rder beyond September 30, 201 3 , until funds are made available to the Department for performance. If funds are not made available for performance beyond September 30, 201 3 , 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 O rder

.

1 Annual compensation of $ 535,141 divided by 478 annual departures (122 service days x 4 flights per day x 98 percent completion).

2 28 flights per week multiplied by $ 1120 per flight.