O rder: 2014

- 4

- 5 Served: April 3, 2014



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 3rd of April , 20 1 4

ORDER REQUESTING PROPOSALS

Summary By this O rder, the Department is requesting proposals from air ca rriers interested in providing

E ssential A ir S ervice (EAS) at Laramie and /or Worland, Wyoming

, for a new contract period beginning October 1, 201 4 , with or without subsidy

. (See Appendix A for a map). Air

c arriers should file their proposals no later than May 9

, 2014

.

Background
By Order 2012

- 8

- 8 (August 3

, 2012 ), the Department selected SkyWes t Airlines, operating as

United Express (SkyWest)

, to provide EAS at Laramie for a two

- year term ending September 30, 2014 at an a nnual subsidy rate of $1,635,346 . Under that Order, SkyWest

pro vides Laramie with 14 nonstop round trips per week to Denver I nte rnational Airport (Denver ) using 30

- passenger Embraer 120 Brasilia (EMB120) aircraft.

By the same Order, the Department re

- selected Great La kes Aviation, Ltd., operating as both a

United Airlines and Frontier Airlines code

- share (Great Lakes), at Worla nd to provide 12 one

stop round trips per week using 19

- passenger Beechcraft 1900 aircraft for an annual subsidy of $1,987,148 , also for a two

- year period from October 1, 2012, through September 30, 2014

. 1

The complet e publ ic file for EAS at both communit ies may be accessed online through the Federal Dockets Management System at www.regulations.gov by entering each community’s respective docket number in the “Search for Rules, Comments, Adjudications, or Supportin g Documents” field.

1 SkyWest’s contract term was originally set to s tart on October 1, 2012; however, the airline did not begin full EAS at the community until November 4 , 2012 . Nevertheless, the Department decided to keep the original contract end of September 30, 2014.

Essential Air Service at

LARAMIE, WYOMING WORLAND, WYOMING

Under 49 U.S.C. § 41731 e t seq

. Docket DOT

- OST

- 1997

- 2958

Docket DOT

- OST

- 1997

- 2981- 2

-

Request for Proposals

As the end of the current contract approaches, the Department is requesting proposals from air carriers interested in providing EAS at Laramie and /or Worland, with subsidy support if

necessary , for a new contract period beginning October 1

, 201 4

. Carriers should file their proposals no later than May 9

, 20 14

. Staff will the n docket the proposals, thereby making them public

. Shortly afterwards, we will provide a summary of the proposals to the

communit y and ask t hem to submit their final comments. We will give full consideration to all proposals that are timely filed. 2

Interested air carriers should prepare their proposals with every expectation that their initial proposals will represent their final and only pr oposals. 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 un realistic proposals and re

- solicit a new round of proposals. However, negotiation and rejection 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. 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 expect proposals to adequately describe the service being proposed and the annual amount of subsidy being requested. The applicants can make their ow n judgments as to the level of detail they wish to present; however, we recommend they include information concerning proposed

schedules and projected block hours . In addition, applicants are urged to provide financial data supporting their subsidy reques ts, including information on their projected expenses and

revenues. We strongly encourage clear, well

- documented proposals that will facilitate their evaluation by the affected communit ies and the Department. 3

Proposals should provide sufficient capacity to accommodate historical levels of traffic. In order to assist air carriers in developing traffic and revenue projections for their proposals, we

2 Carriers should not expect th e Department to acce pt late fil ings. In cases where a carrier proposes to provide

EAS without subsidy and we determine that basic EAS, as required by 49 U.S.C. § 41732, can be reliably provided without such compensation, we typically will not proceed with the carrier

- selecti on case. Instead, we simply rely on that carrier’s subsidy

- free service as proposed.

3 In selecting a carrier to provide subsidized EAS for an eligible place not in Alaska, 49 U.S.C. § 41733(c)(1) directs us to consider five factors: (a) service reliabil ity; (b) contractual and marketing arrangements with a larger carrier at the hub; (c) interline arrangements with a larger carrier at the hub; (d) community views, giving substantial weight to the views of the elected officials representing the users; and (e) whether the carrier has included a plan in its proposal to market its service to the community. In addition, the Consolidated Appropriations Act, 2014, Public Law No. 113

- 76, provides that when selecting a 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 carriers should also be aware that our general provisions governing

Essential Air Service will be included in the sele ction Order as part of our authorization of subsidy for the selected service. Appendix C of this Order contains those general provisions.- 3

-

have provided a summary of historical passengers in Appendi x B. During the year ended

December 31

, 2013, L aramie averaged 38 passenger enplanements per day and Worland averaged 9 passenger enplanements per day

. 4 The Department expects proposals that are

co nsistent with what the communities currently receive

, with service to a large

- or medium

hub airport , suc h as Denver, that provides numerous connecting opportunities to the national air transportation system. With specific respect to Laramie, the Dep artment expects proposals

of 2 round trips each weekday and weekend using 30

- passenge r or larger aircraft (12 per week) or 3 round trips each weekday and weekend using 15

- passen ger or larger aircraft (18 per week). If smaller aircraft (8

- or 9

- seat) are contemplated, additional frequencies will be

considered. With respect to Worland, the Department expects propo sals for two round trips

on week d ays and weekends (12 per week). Again, if 8/9

- seat aircraft are contemplated, additional frequencies will be considered

. Air c arriers are also welcome to propose more than

one service option, if they choose. T hey also ne ed not limit themselves to the se requirements if they envision other, potentially more attractive service possibilities

-- different hubs or length of contract, for example

-- with subsidy requirements that remain competitive.

Community Comments

The commu nities and State are welcome to submit comments at any time. We encourage prospective app licants to contact the communities before they submit their proposals so that they can tailor them to the communities’ needs, as they will not be able to amend them a fter the due date. As noted earlier, we will provide a summary of the proposals to the civic parties shortly after the deadline for carrier proposals, and ask them to submit their final comments.

Other Carrier Requirements The Department is responsible f or implementing various Federal statutes governing lobbying activities, drug

- free workplaces, and nondiscrimination. 5 Consequently, all carriers receiving Federal subsidy for EAS must certify that they are in compliance with Department regulations regardi ng drug

- free workplaces and nondiscrimination, and those carriers whose subsidies exceed $100,000 over the life of the contract must also certify that they are in compliance with the regulations governing lobbying activities. Because the Department is pro hibited 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 carrier s requiring more detailed information regarding these requirements should contact the Offic e of Aviation Analysis at (202) 366

- 5903. 6

4 Worland is exempt from 49 U.S.C. 41731 (a)(1)(B) , the 10

- enplanement rule, due to the fact that it is more than

175 miles from a large

- or medium

- hub airport.

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; (3) 49 CFR Part 27

-- Nondiscrimination on the Basis of Disability in Programs and Activities Receiving or Benefiting from Federal Financial Assistance; (4)

14 CFR Part 382

-- Nondiscrimination on the Basis of Disability in Air Travel; and (5) 49 CFR Part 29

-- Government

- Wide Debarment and Suspension (Non

- Procurement) and Government

- Wide Requirements for Drug

- Free Workplace (Grants).

6 The certifications are also available on the web at http://www.dot.gov/policy/aviation

- policy/small

- community

rural

- air

- service/essential

- air

- service

.- 4

-

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

- delegated to the Director, Office of Aviati on Analysis.

ACCORDINGLY, 1. We request that carriers interested in providing Essential Air Service at Laramie and /or Worland, Wyoming

, submit their proposals, with subsidy support if necessary , no later than May 9

, 20 14 . The proposals should be e

- maile d to: michael.f.martin@dot.gov with the title “Proposal to Provide E AS at Laramie and /or Worland, Wyoming ”; 7

2. Th ese docket s will remai n open until further O rder of the Department; and

3 . We will serve copies of this O rder on the mayor s of Laramie and Worland

, the airport

manager of Laramie Regional Airport

, the airport manager of Worland Municipal Airport, the Wyoming Department of Transportation, and the service list for this docket.

Persons entitled to petition the Department for review of this Order under the Department’s Regulations, 14 CFR Part 385.31(a), must file such petitions within seven (7) 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

o nline at www.regulations.gov

.

7 Questions regarding filings in response to this O r der may be directed to Michael Martin at (202) 366

- 6494 or michael.f.martin@dot.gov

.Appendix A

AREA MAP

Maps generated by the Great Circle Mapper

- copyright © Karl L. Swartz

.Appendix B Page 1 of 2

Laramie, Wyoming 1

Quarter Year Deplanements Enplanements Total Traffic Average D aily Passengers

1 2010 1,881 1,784 3,665 24

2 2010 1,992 1,913 3,905 25

3 2010 2,167 2,321 4,488 28

4 2010 2,618 2,858 5,476 35

Annual

Totals 8,658 8,876 17,534 28

1 2011 1,887 1,763 3,650 24

2 2011 1,904 1,850 3,754 24

3 2011 1,977 1,892 3 ,869 24

4 2011 1,784 1,973 3,757 24

Annual

Totals 7,552 7,478 15,030 24

1 2012 1,723 1,590 3,313 22

2 2012 1,573 1,510 3,083 20

3 2012 1,738 1,680 3,418 22

4 2012 2,127 2,311 4,438 28

Annual

Totals 7,161 7,091 14,252 23

1 2013 2,523 2,571 5,094 33

2 2013 2,875 3,004 5,879 38

3 2013 3,258 3,416 6,674 42

4 2013 3,022 3,411 6,433 41

Annual

Totals 11,678 12,402 24,080 38

1 Source: Bureau of Transportation Statistics; Schedule T

- 100Appendix B Page 2 of 2

Worland, Wyoming 1

Quarter Year Deplanements Enplanements Total Traffic Average Daily Passengers

1 2010 624 622 1,246 8

2 2010 701 671 1,372 9

3 2010 676 707 1,383 9

4 2010 750 734 1,484 9

Annual

Totals 2,751 2,734 5,485 9

1 2011 584 592 1,176 8

2 2011 822 746 1,568 10

3 2011 885 914 1,799 11

4 2011 832 818 1,650 10

Annual

Totals 3,123 3,070 6 ,193 10

1 2012 647 674 1,321 9

2 2012 777 716 1,493 10

3 2012 682 741 1,423 9

4 2012 655 664 1,319 8

Annual

Totals 2,761 2,795 5,556 9

1 2013 542 543 1,085 7

2 2013 717 664 1,381 9

3 2013 891 913 1,804 11

4 2013 652 692 1,344 9

Ann ual

Totals 2,802 2,812 5,614 9

1 Source: Bureau of Transportation Statistics, Schedule T

- 10 0Appendix 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 t he 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

c ompleted 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 schedul e 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 p eriod 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 car rier 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 a djusted 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 comp lete, 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 Dep artment and carrier do not constitute a total or partial reduction or cessation of payment.

Funds may not be available for performance under this Order beyond [DATE]. The Government’s obligation for performance under this Order beyond [DATE], is subject to the availability of 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 perfo rmance. If sufficient funds are not made available for performance beyond [DATE] , the Department will provide notice in writing to the carrier.

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, including any amended cl aims, must be submitted within 9 0 days of th e last day of the month for which compensation is being claimed. For example, claims for service provided in July must be filed by October 31 st ; August claims must be submitted by November 30 th , and so on.