Order: 2011-4-12

 Served: April 11, 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 11th day of April, 2011

Essential Air Service at

MARION/HERRIN, IL

QUINCY, IL/HANNIBAL, MO

CAPE GIRARDEAU/SIKESTON, MO

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

 Docket DOT-OST-2000-7881

 Docket DOT-OST-2003-14492

 Docket DOT-OST-1996-1559

ORDER RE-SELECTING CARRIER

Summary

By this order, the Department is re-selecting Hyannis Air Service, Inc. d/b/a Cape Air (Cape Air) 

to provide essential air service (EAS) at Marion/Herrin, Illinois (Marion) and Quincy, 

Illinois/Hannibal, Missouri (Quincy), and Cape Girardeau/Sikeston, Missouri (Cape Girardeau), 

for the four-year period from December 1, 2011, through November 30, 2015, for a combined

annual subsidy rate of $5,689,438 ($2,104,616 for Marion, $1,956,856 for Quincy, and 

$1,627,966 for Cape Girardeau).1 Marion and Quincy will receive 36 weekly round trips and 

Cape Girardeau will receive 24 weekly round trips. All service will operate nonstop to/from 

Lambert-St. Louis International Airport (St. Louis) using eight- or nine-passenger Cessna 402 

aircraft.

Background

By Order 2009-10-13, October 22, 2009, the Department selected Cape Air to provide subsidized 

EAS at Marion, Quincy, and Cape Girardeau, for a two-year period beginning when the carrier 

inaugurated full EAS. Cape Air inaugurated service to all three communities on November 7, 

2009, using eight- or nine-passenger Cessna 402 aircraft, making November 30, 2011, the rate 

expiration date. Marion and Quincy receive 36 weekly nonstop round trips and Cape Girardeau 

 

1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds.
receives 24 weekly nonstop round trips. Cape Air operates its service from all three 

communities nonstop to St. Louis under a codeshare agreement with American Airlines. The 

annual subsidy amounts are: $2,053,783 for Marion, $1,946,270 for Quincy, and $1,469,715 for 

Cape Girardeau.

The Department issued Order 2010-11-8, November 12, 2010, soliciting proposals to provide 

EAS, with subsidy support if necessary, at the three communities, for a new rate term. 

Proposals

In response to that order, we received proposals from four carriers: Cape Air, the incumbent, 

Gulfstream International Airlines (Gulfstream), Multi-Aero, Inc. d/b/a Air Choice One (Air 

Choice One), and Planemasters Jet Charter (Planemasters).

Cape Air

Cape Air proposes an inseparable package for all three communities that comprises two options. 

First, status-quo service (36 weekly round trips for Marion and Quincy, and 24 weekly round 

trips for Cape Girardeau), with a two-year and a four-year rate. This option also offers a 36 

weekly round trip proposal for Cape Girardeau, at a two-year and a four-year rate. Second, it 

proposes a six daily round trip pattern (42 weekly round trips) for all three communities. All of 

those rates also include a two-year and a four-year rate. A summary of those options is provided 

below. All flights would continue to operate to St. Louis with eight- or nine-seat Cessna 402 

aircraft with a codeshare arrangement with American Airlines. Additionally, Cape Air proposes 

to establish a city ticket office in each of the three communities and inaugurate a ground 

transportation shuttle at St. Louis to transport Cape Air customers transferring between 

terminals.

Number of round

EAS community trips per week 2-year rate 4-year rate

Option 1 Marion 36 $2,157,421 $2,104,616

Quincy 36 $2,005,954 $1,956,856

Cape Girardeau 24 $1,668,812 $1,627,966

Cape Girardeau 36 $2,235,280 $2,180,570

Option 2 Marion 42 $2,407,130 $2,348,214

Quincy 42 $2,239,288 $2,184,480

Cape Girardeau 42 $2,505,845 $2,444,513

Annual subsidy

Gulfstream

Gulfstream proposes to serve Marion only with 18 weekly nonstop round trips to Memphis using

using 19-passenger Beech 1900D aircraft. It would operate the service under its independent 

Gulfstream International Airlines brand with interline ticketing and baggage agreements with 

most legacy carriers. Its proposal was originally contingent upon its being selected to provide 

subsidized EAS at Muscle Shoals, Alabama (on March 18, the Department in fact did select 
Gulfstream to provide EAS to Muscle Shoals.) See Order 2011-3-26. The annual subsidy for its 

proposed service is $2,636,713.

Air Choice One

Air Choice proposed three options each for Marion and Quincy, and two options for Cape 

Girardeau, all using 9-passenger Cessna Grand Caravan aircraft. Air Choice has signed a 

ticketing and baggage agreement with United Airlines, but as of the date of this Order, it has not 

been implemented.

The first option for Marion offers 12 weekly nonstop round trips to Chicago O’Hare and 24 

weekly nonstop round trips to St. Louis for an annual subsidy of $2,858,985. The second option 

proposes 36 weekly nonstop round trips to St. Louis for an annual subsidy of $2,334,806. The 

third option proposes 18 nonstop weekly round trips to Memphis and 18 nonstop weekly round 

trips to St. Louis for $2,740,337 annually.

The first option for Quincy proposes 18 weekly nonstop round trips to Chicago O’Hare and 18 

nonstop weekly round trips to St. Louis for $2,798,697, subsidy per year. Option #2 would offer 

36 weekly nonstop round trips – all to St. Louis – for an annual subsidy of $2,173,531. 

Option #3 for Quincy would consist of 36 weekly nonstop round trips to Chicago O’Hare for 

$2,920,476 in annual subsidy.

Air Choice One’s option #1 for Cape Girardeau proposes 24 nonstop weekly round trips to St. 

Louis for $1,665,546, in annual subsidy per year. Option #2 is 12 nonstop weekly round trips to 

Memphis and 12 nonstop weekly round trips to St. Louis for an annual subsidy of $1,938,265.

Planemasters

Planemasters proposes to serve Cape Girardeau and Marion only with 18 nonstop and one-stop 

round trips each week using eight- or nine-passenger Hawker Beechcraft King Air 200 aircraft 

for an annual subsidy of $5,151,796.

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

http://www.regulations.gov/ by entering DOT-OST-2000-7881 (Marion), DOT-OST-2003-

14492 (Quincy), or DOT-OST-1996-1559 (Cape Girardeau), in the “Enter Keyword or ID” field.

Community and State Comments

On January 7, 2011, we requested community comments regarding the carrier selection at the 

three communities. A summary of the comments received follows.

Marion

In a letter from Doug Kimmel, the Airport Director at Williamson County Regional Airport, he 

states that the Williamson County Airport Authority voted unanimously to recommend Cape Air 

and its proposal for six daily flights over a four-year contract term. Further, he states that 

enplanements have increased steadily as a result of Cape Air’s service and cites affordable fares, 

frequency of flights, reliable operations, advertising and marketing efforts, and its codeshare 

with American Airlines. The Airport fully supports Cape Air’s proposal for a four-year contract 

in order to plan over a longer term and the proposal for six daily flights, because the reduced 
weekend schedule “consistently has difficulty in meeting passenger demand.” It also is 

supportive of Cape Air’s proposal to establish a local City Ticket Office and a ground shuttle at 

St. Louis to transport customers between Terminal 1 and Terminal 2. 

Quincy

In a letter from John A. Spring, Mayor of Quincy, he states that the City of Quincy Aeronautics 

Committee voted unanimously to support the recommendation of Cape Air and its proposal for 

six daily flights over a four-year contract term. He informs us that the City of Quincy and its 

residents are extremely satisfied with Cape Air’s service and he anticipates continued growth in 

traffic, surpassing over 20,000 passengers in 2011. Like Marion, it supports Cape Air’s proposal 

to operate a local City Ticket Office and a new ground shuttle at St. Louis. Mayor Spring also 

states that because of Cape Air’s “quality and affordable service to the national transportation 

system,” he has witnessed a renewed confidence with the business and traveling community.

Cape Girardeau

We received a joint letter from Mayor Harry E. Rediger and City Manager Scott A. Meyer

supporting the reselection of Cape Air. The letter states that the Cape Girardeau Regional 

Airport Advisory Board and the Cape Girardeau Regional Airport Administration thoroughly 

reviewed all three proposals for EAS and interviewed two of the carriers. The Advisory Board 

stated that Planemasters’ proposal, while including six daily round trip flights, all flights to St. 

Louis would stop in Marion and the reverse trip would require a stop in Cape Girardeau for 

Marion passengers. It further noted that Planemasters declined the Advisory Board’s request for 

an interview, because Marion had already announced its recommendation to retain Cape Air, and 

Planemasters’ proposal was a packaged bid for both communities. The Board noted Air Choice 

One’s proposal with all St. Louis flights with a $39 fare and the proposal with flights to St. Louis

and Memphis with a $39 and $69 fare, respectively. It appreciated the carrier’s proposal to offer 

two destinations, but felt that two daily flights to each destination was not enough frequency. 

The Board said Cape Air’s proposal offered two differences from the other carriers –

establishment of a city ticket office and a ramp-side inter-terminal shuttle at St. Louis. It also 

noted that Cape Air offered an annual marketing budget to advertise the service. Cape Air 

offered to continue its $49 fare to/from St. Louis and noted its discount for a four-year rate term. 

The Board and City Council prefer the six daily round trip options, with the two additional daily

round trips providing additional frequency, which passengers have been requesting. It states that 

the extra flights would allow a later flight returning from St. Louis, thus enabling easier returns 

from the East and West coasts. It also recommended the four-year contract option to allow Cape 

Air time and opportunity to invest and provide Cape Girardeau “more consistent service 

expectations.”

Decision

We have decided not to select Planemasters because it does not hold the requisite DOT authority

to operate scheduled air service. In addition, Planemasters received no support from either 

community, and its proposal for Marion and Cape Girardeau was the most expensive proposal 

for the two communities. We appreciate Planemasters’ interest in the EAS Program and 

encourage the carrier to obtain the proper authority to provide scheduled service from the 

Department’s Air Carrier Fitness Division if it continues to be interested in the program.
We also decline to select either Gulfstream’s proposal (Marion only) or Air Choice One’s (all 

three). While Gulfstream’s subsidy request for Marion was competitive with proposals from 

other carriers, its lack of community support is critical to our decision not to select it at Marion. 

Air Choice One also received no community support, and all its proposals required more subsidy

than Cape Air’s.

Cape Air received unanimous support from all three communities. All three communities prefer 

Cape Air’s six daily round trip options (a total of 42 round trips per week), an increase of six 

weekly round trips each at Marion and Quincy and 18 additional weekly round trips at Cape 

Girardeau. While we recognize that all three communities have experienced growth in 

enplanements since Cape Air inaugurated service, the additional flights that Marion and Quincy

recommend would all be operated on Saturday and Sunday. This is contrary to the usual 

experience, whereby reduced weekend service in certain markets is common practice, not only in 

the EAS program, but it is widespread in the airline industry at large.

Cape Girardeau has recommended Cape Air’s proposal for six daily round trips, seven days per 

week, an increase in departures of 75 percent. Cape Girardeau’s EAS determination, by Order 

94-4-29, provides for 15-seat aircraft providing at least two round trips each weekday and each 

weekend to St. Louis (nonstop or one stop), providing at least 29 passenger seats inbound and 29 

passenger seats outbound. When communities such as Cape Girardeau are entitled to 15-seat 

aircraft, but are served with aircraft seating fewer than 15 passengers, we generally subsidize 

additional frequencies, as we did with its current service. Currently, Cape Girardeau is served 

with four frequencies each day, except for weekends, when demand is generally lower, with a 

total seating capacity of 32 seats in each direction, meeting the Department’s determination of 

service. EAS is intended to provide a safety-net level of service and does not necessarily provide 

all of the service that a community may desire. 

Based on its unanimous community support, and demonstration of providing exceptional service 

at all three communities discussed here, as well as other communities it serves through the EAS 

program, we will select Cape Air to provide service for another term. However, we are selecting

Cape Air’s option #1, to serve the communities at current levels - 36 nonstop round trips per 

week each for Marion and Quincy, and 24 nonstop round trips per week for Cape Girardeau. 

Cape Air’s subsidy request is reasonable for the service proposed. This level of service will 

continue to give all three communities a wide selection of arrival and departures times during the 

week with convenient options on Saturdays and Sundays. We also note that Cape Air and the 

communities are partners in the EAS Program with the Department and Cape Air can add 

additional flights to Marion, Quincy, or Cape Girardeau outside of the EAS-subsidized flights to 

meet the demand as warranted.

Regarding Cape Air’s two- and four-year options, all three communities support the four-year 

option and the four-year option requires slightly less subsidy on an annual basis as well; 

therefore, we will select it.

We shall make these selections at all three communities at issue here contingent upon the 

Department’s receiving properly executed certifications from Cape Air that the carrier is in 
compliance with the Department’s regulations regarding drug-free workplaces and 

nondiscrimination, as well as the regulations concerning lobbying activities.

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

Marion/Herrin, Illinois, Quincy, Illinois/Hannibal, Missouri, and Cape Girardeau/Sikeston, 

Missouri;

2. 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 Marion/Herrin, Illinois, and Quincy, Illinois/Hannibal, 

Missouri, and Cape Girardeau/Sikeston, Missouri as described in Appendix C;

3. 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;

4. 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 

Marion/Herrin, Illinois, Quincy, Illinois/Hannibal, Missouri and Cape Girardeau/Sikeston, 

Missouri;

5. These dockets will remain open until further order of the Department; and
- 7 -

6. We will serve copies of this order on the mayors of Marion, Herrin, Quincy, Hannibal, Cape 

Girardeau, and Sikeston, and the airport managers of Williamson County Regional Airport 

(Marion), Quincy Regional Airport, and Cape Girardeau Regional Airport, Hyannis Air Service, 

Inc. d/b/a Cape Air, Gulfstream International Airlines, Multi-Aero, Inc. d/b/a Air Choice One, 

and Planemasters Jet Charter.

By:

SUSAN L. KURLAND

Assistant Secretary

for Aviation and International Affairs

(SEAL)

An electronic version of this document is available 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

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

Proposal to serve Marion, Quincy, and Cape Girardeau

CGI-Cape Girardeau

MWA-Marion

UIN-Quincy
Appendix C

Page 1 of 3

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

Essential Air Service to be Provided at Marion/Herrin, Illinois

Effective Period: December 1, 2011, through November 30, 2015

Scheduled Service: 36 weekly nonstop round trips to St. Louis

Intermediate stops and upline service: None permitted

Aircraft: Cessna 402, 8 or 9 passenger seats

Rate per Eligible Flight: $5791

Weekly Ceiling: $41,6882

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 April 15, 2011. The Government’s 

obligation for performance under this order beyond April 15, 2011, 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 April 15, 2011, until funds are made available to the 

Department for performance. If funds are not made available for performance beyond April 15, 2011, 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 $2,104,616, divided by 3,632 annual departures (52 weeks x 72 flights per week x 97 

percent completion).

2 72 flights per week multiplied by $579 per flight.
Appendix C

Page 2 of 3

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

Essential Air Service to be Provided at Quincy, Illinois/Hannibal, Missouri

Effective Period: December 1, 2011, through November 30, 2015

Scheduled Service: 36 weekly nonstop round trips to St. Louis

Intermediate stops and upline service: None permitted

Aircraft: Cessna 402, 8 or 9 passenger seats

Rate per Eligible Flight: $5393

Weekly Ceiling: $38,8084

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 April 15, 2011. The Government’s 

obligation for performance under this order beyond April 15, 2011, 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 April 15, 2011, until funds are made available to the 

Department for performance. If funds are not made available for performance beyond April 15, 2011, 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.

 

3 Annual compensation of $1,956,856 divided by 3,632 annual departures (52 weeks x 72 flights per week x 97 

percent completion).

4 72 flights per week multiplied by $539 per flight.
Appendix C

Page 3 of 3

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

Essential Air Service to be Provided at Cape Girardeau/Sikeston, Missouri

Effective Period: December 1, 2011, through November 30, 2015

Scheduled Service: 24 weekly nonstop round trips to St. Louis 

Intermediate stops and upline service: None permitted

Aircraft: Cessna 402, 8 or 9 passenger seats

Rate per Eligible Flight: $6721

Weekly Ceiling: $32,2562

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 April 15, 2011. The Government’s 

obligation for performance under this order beyond April 15, 2011, 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 April 15, 2011, until funds are made available to the 

Department for performance. If funds are not made available for performance beyond April 15, 2011, 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 $1,627,966 divided by 2,421 annual departures (52 weeks x 48 flights per week x 97 

percent competion).

2 48 flights per week multiplied by $672 per flight.