Order: 2013-5-4

 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 2nd day of May, 2013

Essential Air Service at

WEST YELLOWSTONE, MONTANA

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

Docket DOT-OST-2003-14626

ORDER SELECTING CARRIER

Summary

By this Order, the Department is re-selecting SkyWest Airlines (“SkyWest”) to continue to 

provide Essential Air Service (EAS) at West Yellowstone, Montana, at an annual subsidy rate of

$535,141, for the next two summer seasons from June 1 through September 30, 2013, and 2014.1

Background

By Order 2012-4-9, 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 Order, 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. 

In anticipation of the end of the rate term, the Department issued Order 2012-12-24, 

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

necessary, at West Yellowstone, for the next two summer seasons. 

Proposals

In response to that order, we received a proposal from only SkyWest, the incumbent.

 1 Subsidy 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 June 1 through 

September 30, 2013, and 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 docket, may be accessed online at

http://www.regulations.gov/ by entering “DOT-OST-2003-14626.”

Community and State Comments

On February 12, 2013, we requested community comments regarding the carrier selection at 

West Yellowstone. 

In a February 27, 2013, 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 relationship with SkyWest Airlines since 1987 

and appreciates the reliable and vital 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 Department also received a February 25, 2013, letter from Mike Tooley, Director, Montana 

Department of Transportation (“MDT”), stating “SkyWest Airlines has served this region for 

many years with excellent service” and that MDT “supports the proposal from SkyWest Airlines 

and recommends the Town of West Yellowstone to continue with SkyWest for the 2013 and 

2014 seasons.” 

Decision

This case is very straightforward. SkyWest is the only applicant and has served West 

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

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 from West 

Yellowstone to Salt Lake City, for the 2013 and 2014 summer seasons, at an annual subsidy rate 

of $535,141.

We shall make SkyWest’s selection at West Yellowstone contingent upon the Department’s 

receiving properly executed certifications from SkyWest 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 41738 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 

subject 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 our 
fitness finding. We therefore conclude that the carrier remains fit to conduct the operations 

proposed here.

This Order is issued under authority delegated in 49 CFR Part 1.25a(b) .

ACCORDINGLY,

1. We select SkyWest Airlines to provide Essential Air Service 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 

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 from the service 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 Order;

4. We find that SkyWest Airlines continues 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. This docket will remain open until further order of the Department; and

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

West Yellowstone, the Montana Department of Transportation, Aeronautics Division, and 

SkyWest Airlines.

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
Appendix B
Appendix C

SkyWest Airlines

Essential Air Service to be Provided at West Yellowstone, Montana

Effective Period: June 1 through September 30, 2013 and 2014

Scheduled Service: 14 nonstop round trips to Salt Lake City International Airport each week

Aircraft: Embraer Brasilia (EMB 120), 30 seats

Rate per Eligible Flight: $1,1201

Weekly Ceiling: $31,3602

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 may not be available for performance under this Order beyond September 30, 2013. The Government’s 

obligation for performance under this Order beyond September 30, 2013, 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, 2013, until funds are made 

available to the Department for performance. If funds are not made available for performance beyond 

September 30, 2013, 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 $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.