Order: 2010-3-31

Served: March 25, 2010

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 25th day of March, 2010

 Docket DOT-OST-1997-2515

 

 

ORDER REQUESTING PROPOSALS 

Summary

By this order, the Department is requesting proposals from carriers interested in providing 

essential air service (EAS) at Kirksville, Missouri, for the next two year period from August 1, 

2010, through July 31, 2012, with or without subsidy. Proposals are due April 23, 2010. (See 

Appendix A for an area map.) 

Background

By Order 2008-5-2, May 5, 2008, the Department selected Multi-Aero, Inc., doing business as 

Air Choice One (“Air Choice One”) to provide 11 weekly nonstop round trips using twin-engine 

aircraft, to Lambert-St. Louis International Airport (“St. Louis”), for a two-year period beginning 

when the carrier inaugurated service through the end of the 24th month thereafter, at an annual 

subsidy of $806,169. On July 28, 2008, Air Choice One inaugurated service at Kirksville using a 

four-passenger Beechcraft Baron 58 aircraft. On January 7, 2009, Air Choice One upgraded 

Kirksville’s service using a 9-passenger Piper Navajo Chieftain aircraft. 

Subsidy per Passenger

Based on 12-month traffic levels ending December 31, 2009, the most recent period available, 

1,877 passengers (enplaned and deplaned) used Air Choice One’s service at Kirksville Regional 

Airport. Air Choice One’s annual subsidy amount to serve Kirksville is $806,169, resulting in a 

per-passenger subsidy of $429. The Department is prohibited from subsidizing service at 

communities whose subsidy-per-passenger exceeds $200 unless the community is more than 210 

Essential Air Service at

KIRKSVILLE, MISSOURI

under 49 U.S.C. 41731 et seq.
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miles from the nearest medium or large hub airport, which is not the case here. Kirksville is 163

highway miles from Kansas City International Airport, the closest medium hub airport.

We noted in the carrier-selection Order (2008-5-2) that subsidy for Kirksville was high when 

viewed in the context of passenger usage. We then encouraged the community and Multi-Aero 

to work together to maximize use of the service awarded under that Order to avoid exceeding the 

$200 per passenger cap, which could result in the termination of eligibility for subsidy under the 

EAS program. We do see some progress in increasing passenger levels in the fourth quarter of 

2009; however, the per-passenger subsidy remains above $200.

Contributing to the high subsidy per passenger at Kirksville is a unique set of circumstances. 

Kirksville has suffered three different service hiatuses, a fatal crash, sub-EAS service, and 

marginal service. In December 1989, Midcontinent Airlines ceased all operations, leaving 

Kirksville with no air service. It was not until a year later, in December 1990, that the 

Department selected Redwing to serve Kirksville with 8/9-seat aircraft, smaller than the 15-seat 

aircraft to which Kirksville is entitled under the program’s governing statutes. Redwing 

suddenly ceased all service in 2000, again leaving Kirksville with no air service, and the 

Department quickly selected Corporate Airlines (“Corporate”) to backfill. In October 2004, 

Corporate suffered a fatal crash while attempting to land at the Kirksville airport. In 

August 2006, the Department selected Air Midwest to replace Corporate (which had changed its 

name to RegionsAir by that time). In June 2008, Air Midwest shut down, once again leaving 

Kirksville with no air service. We then selected Air Choice One to serve Kirksville, which it has 

done since July 2008. 

While the community is very pleased with the carrier’s completion and on-time performances, 

there are other very basic factors that have contributed to a low load factor. From July 2008 

through the end of 2009, the carrier operated a schedule that was not conducive for Kirksville 

travelers. Specifically, the morning flight originated at St. Louis rather than at Kirksville as the 

community requested on numerous occasions since shortly after service was inaugurated, giving 

Kirksville originating travelers their first departing flight after 9:30 a.m. This was not conducive 

for same-day travel to destinations beyond St. Louis, or for any meaningful inbound connections 

at St. Louis because the flight departed so early in the morning. Finally, in January 2010, the 

carrier began originating the aircraft at Kirksville with a departure between 6:00 a.m. and 7:00 

a.m., and passenger levels have increased slightly. We also note that the passenger levels nearly 

doubled from the fourth quarter of 2008 to the fourth quarter of 2009, and traffic in the first two 

months of 2010 shows improvement over the first two months of 20091

Internet

. However, and most 

importantly, while Air Choice One is in the Sabre system, thus enabling travel agents to sell 

tickets for the Kirksville-St. Louis segment then combining it with another flight if the passenger 

is traveling beyond St. Louis, the carrier does not have interline agreements and is not in any of 

the -based travel reservation websites (e.g. Expedia, Travelocity, Orbitz). As a result, 

reservations and ticket sales may be made only through a travel agent, via telephone through the 

carrier’s toll-free reservations number, or through its website. Air Choice One continues to work 

towards expanding its availability in Internet-based booking engines.

Given all these circumstances, we are willing to give the community one last chance to remain in 

the program.

 1 January and February 2009 – 199 passengers; January and February 2010 – 308 passengers
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Request for Proposals

As the end of the current rate terms approaches, we are here requesting proposals from carriers 

interested in providing essential air service at Kirksville, with or without subsidy, for the two-year 

period beginning August 1, 2010. Carriers should file their proposals no later than April 23, 2010. 

After that date, our staff will docket proposals, thereby making them public, and direct each carrier 

to serve a copy of its proposal on the civic parties and other applicants. Shortly afterwards, we will 

provide a summary of the proposals to the community and ask them to submit their final comments. 

We will give full consideration to all proposals that are timely filed.2 

Interested carriers should prepare their proposals with every expectation that their initial proposals 

will represent their final and only proposals. However, we retain the discretion to negotiate 

proposals with carriers when we deem it desirable; in such cases, of course, we will give all 

applicants the same opportunity. We also retain the discretion to reject outright all unreasonable or 

unrealistic proposals and solicit a new round of proposals. However, negotiation or rejections are 

only occasional exceptions to the rule.

We are here providing interested carriers with some basic information to serve as guidance when 

they prepare their proposals, but we will not prescribe a precise format for their proposals. We 

expect proposals to adequately describe the service being proposed and the annual amount of 

subsidy being requested. The applicants 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 strongly encourage clear, well-documented proposals that will facilitate their evaluation by 

the affected communities and the Department.3

Because Kirksville is already over the $200 cap, we will only consider credible proposals from 

operating carriers that can reasonably demonstrate that they can operate at Kirksville under the 

$200 per passenger cap after a 12-month period after inauguration of service or can demonstrate 

that it would carry enough passengers to not exceed that cap. In that regard, if we do receive and 

select such a proposal, we intend to monitor passenger levels closely. Specifically, we plan to 

afford the community a new carrier a three-month ramp up period, and then examine the next 

year’s data, i.e., months 4 through 15 after start up. If passenger levels are not high enough to 

bring the subsidy-per-passenger under the $200 statutory cap, we would take steps to terminate 

Kirksville’s eligibility under the EAS program. If we receive no such proposals, we would

similarly then take action to terminate Kirksville’s eligibility.

 2 Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide 

essential air service without subsidy and we determine that service can be reliably provided without such 

compensation, we do not proceed with the carrier-selection case. Instead, we simply rely on that carrier’s subsidyfree service as proposed.

3 In selecting a carrier to provide subsidized essential air service, 49 U.S.C. 41733(c) (1) directs us to consider four 

factors: (1) service reliability; (2) contractual and marketing arrangements with a larger carrier at the hub; (3) 

interline arrangements with a larger carrier at the hub; and (4) community views. In addition, the Consolidated 

Appropriations Act, 2008, Public Law 110-161, provides that when selecting a carrier to provide EAS, the 

Department may consider the relative subsidy requirements, thus codifying a factor that we have considered since 

the inception of the program. Interested carriers should also be aware that our general provisions governing 

essential air service will be included in the selection order as part of our authorization of subsidy for the selected

service. Appendix C of this order contains those general provisions. 
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We expect proposals consisting of service with two-pilot, twin-engine aircraft with at least 15 

passenger seats, and offering two round trips each weekday and weekend (12 total round trips 

per week) to St. Louis or a suitable hub airport, with numerous connecting opportunities to the 

national air transportation system. While Kirksville is entitled to 15-seat aircraft, traffic levels 

are very low. If less than 15-seat aircraft are proposed, we request proposals for three round trips 

each weekday and weekend (a total of 18 to 21 per week). If a proposal offering aircraft fewer 

than 15 seats is submitted and the community/communities ultimately support the service, in 

effect waiving their right to 15-seat or larger aircraft, we would consider the waiver to apply only 

to the two-year carrier-selection at hand, i.e. we would not assume that the community waives 

their rights for all time. Of course, as always, we will formally solicit the community’s views on 

any service options we receive before making a long-term carrier selection decision. The 

community and air carriers are encouraged 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 airline interested in submitting a proposal. 

We encourage proposals that meet these requirements in an efficient manner. Carriers are also 

welcome to propose more than one service option, if they choose; they need not limit themselves 

to those requirements if they envision other, potentially more attractive service possibilities --

different hubs, for example -- with subsidy requirements that remain competitive.

New Filing Procedures

Carrier proposals should be submitted to the Department with all materials merged into a single 

document. The document will be published on Regulations.gov and each page should be 

formatted to be viewed online. 

Service and Traffic History

During the 12-month period ending December 31, 2009, the most recent period for which traffic data 

are available, Kirksville averaged 3 enplanements a day.4 In order to assist carriers in making their 

traffic and revenue forecasts, we have included historical traffic data in Appendix B. 

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.5

 4 See Appendix B for historical traffic data. Enplanements represent one-half of total origin-and-destination traffic, 

and average enplanements per day are based on 77 weekdays and weekends each quarter, except as noted.

 Consequently, all carriers receiving 

Federal subsidy for essential air service must certify that they are in compliance with Department 

regulations regarding drug-free workplaces and nondiscrimination, and those 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. Because the Department is 

prohibited from paying subsidy to carriers that do not submit these documents, all carriers that 

plan to submit proposals involving subsidy should be aware that the selected carrier will be 

required to complete the required certifications. Interested carriers requiring more detailed 

5 The regulations applicable 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 (nonprocurement) and government-wide requirements for drug-free workplace (grants).
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information regarding these requirements should contact the Office of Aviation Analysis at 

(202) 366-5903.6

Community and State Comments

The community and state are welcome to submit comments on the proposals at any time. As 

noted earlier, however, we will provide a summary of the proposals to the civic parties and ask 

them to submit their final comments shortly after April 23, the due date for 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 carriers interested in providing essential air service at Kirksville, Missouri, 

from August 1, 2010, through July 31, 2012, submit their proposals, with or without requests for 

subsidy, no later than April 23, 2010. The proposals should be e-mailed to EAS@dot.gov, with 

the title: “Proposal to Provide Essential Air Service at Kirksville, Missouri, Docket DOT-OST1997-2515;”7

2. This docket will remain open until further order of the Department; 

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

7 Questions regarding filings in response to this order may be directed via e-mail to Kevin Schlemmer at 

kevin.schlemmer@dot.gov or via phone at (202) 366-3176.
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3. We will serve copies of this order on the Mayor of the City of Kirksville, the Executive 

Director of Kirksville Regional Airport, and the parties listed in Appendix D. 

Persons entitled to petition the Department for review of this order under the Department’s 

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 on the Internet 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

Traffic History*

Kirksville, Missouri (IRK)

Year Quarter Enplanements Deplanements Totals

2005 1 278 271 549

2005 2 301 275 576

2005 3 385 335 720

2005 4 499 449 948

2,793 CY2005

2006 1 380 392 772

2006 2 436 389 825

2006 3 384 342 726

2006 4 264 194 458

2006 4 371 276 647

3,428 CY2006

2007 1 485 349 834

2007 2 482 510 992

2007 3 351 378 729

2007 4 492 465 957

3,512 CY2007

2008 1 189 232 421

2008 2 197 197 394

2008 3 103 103 206

2008 4 178 182 360

1,381 CY2008

2009 1 162 179 341

2009 2 202 217 419

2009 3 233 231 464

2009 4 329 324 653

1,877 CY2009

Average daily enplanements at Kirksville for calendar year 2009 – 3.0** 

*Source – T-100 Market Report, Passengers in Scheduled Passenger Service, includes traffic for Regions 

Air, Inc. (CY2006) Air Midwest, Inc. (4Q2006-2Q2008), and Multi-Aero, Inc. d/b/a Air Choice One

(3Q2008 through CY2009).

**Average daily enplanements is total traffic for the most recent 12-month period ending December 31, 

2009, divided by 313 service days, 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 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.

Funds are not currently available for performance under this solicitation beyond [DATE]. 

The Government’s obligation for performance under this solicitation 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 available 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.

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.

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

provided under this order.
Appendix D

Scheduled Air Carriers, Contiguous US and Puerto Rico

Air Sunshine, Inc. Jet Air, Daniel Wolford

Air Sunshine, Mirmohammad Adili Kenmore Air, Tim Brooks

Air West, Inc., John Raatz McCall Aviation and Salmon Air, Dan Scott

Air Wisconsin, Annette Daly McCall Aviation, Michelle

Airline Associates, Bill Mishk Mesa, Jonathan Ornstein

Alaska Airlines, Jeff Cole Mesa, Michael Lotz 

Alaska Airlines, Sandy Sinick Mesa, Mike Holcomb

Allegiant Air, Robert Ashscroft Mesaba, John Spanjers 

American Airlines, Carl Nelson Mesaba, Max Shemesh

American Eagle, Jeffrey Hartz Midstar Airlines, Jeffrey Fonner

Atlantic Southeast, Jon Lindlief Midwest Airlines, Anthony Intravia 

Atlantis Southeast, Roger Weston Midwest Airlines, Greg Aretakis

Bemidji Aviation, Cori Rude Midwest Airlines, J.C. Augustson

Bemidji Aviation, Arlen Rinkenberger MN Aviation, Jose Maldonado 

Cape Air, Andrew Bonney Multi Aero, Darnea

Cape Air, Dan Wolf Multi Aero, Shane Storz

Cape Air, J. Flaherty Northwest, Tim McDonald 

Classic Aviation, Tony Henderson NYDC, Henok Araya

Colgan Air, Mike Colgan OST, Brian Swanson

CommutAir, Andy Price OST, Dennis DeVany

CommutAir, Joel Raymond OST, Kevin Adams

Consultant, Robert Silverberg OST, Kevin Schlemmer

Continental, Bruce Keiner OST, Michael Martin 

Continental, Dan Weiss OST, Renee Williams

Continental, Lorry Halloway Pacific Wings, Frank Ford

Delta, Amy Martin Pacific Wings, Greg Kahlstorf

Delta, Dan Shuman PenAir, Danny Seybert

Delta, Jeff Morgan PenAir, Scott Bloomquist

Delta, Joe Esposito Pinnacle Airlines, Joe Williams 

Delta, Karen Zachary Pinnacle Airlines, Phil Reed

Delta, Sascha Vanderbellen Public Charters, Jim Gallagher

Dorado Jets Scenic, Mary Schneider

Dorado Jets, Mark McKenna Scenic, Mitzi Daines

Era Aviation, Mike Lenorman Seaborne Airlines, Wayne D'Amico

Executive Airlines, Kate Soled SeaPort Airlines, Jim Day

Frontier Flying, Bob Hajducovich SeaPort Airlines, Rob McKinney

Gem Air, Dan Schroeder Shuttle America, Jerry Balsano 

Gem Air, JoAnn Wolters SkyWest, Eric Christensen

Great Lakes, Chuck Howell SkyWest, Michael Thompson

Great Lakes, Doug Voss Sovereign Air, Bob Karns

Great Lakes, Greg Stephens Sovereign Air, Lois R. Barton

Gulfstream, Dave Hackett Tradewind, Eric Zipkin 

Gulfstream, Mickey Bowman TransStates, Fred Oxley 

Gulfstream, T. Cooper TransStates, Gerry Wigmore

Homeland Security, David Bernier United, Alicia Gabriel

Homeland Security, Randy Webb United, James Starnes

Horizon Air, Dan Russo US Airways, Benjamin Slocum

Horizon Air, Jennifer Thompson US Airways, Howard Kass

Horizon Air, Jeff Cole US Airways, Jason Reisinger 

ICEPR, Luis Irizarry Warbelows Air Ventures, Art Warbelow

Island Air Charters, Linda House Wings Air (Air Greco), Aaron Goerlich