Order: 2012-12-23

 Served: December 31, 2012

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 31st of December, 2012

Essential Air Service at

BURLINGTON, IOWA

DECATUR, ILLINOIS

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

DOT-OST-2001-8731

DOT-OST-2006-23929

ORDER EXTENDING SERVICE PERIOD

Summary

By this order, the Department is extending the service period of Multi-Aero, Inc. d/b/a Air 

Choice One (“Air Choice One”) to provide Essential Air Service (EAS) at Burlington, Iowa, and 

Decatur, Illinois, at a combined annual subsidy rate of $4,585,488 ($1,917,566 for Burlington 

and $2,667,922 for Decatur), for a three-year period from February 1, 2013, through January 31, 

2016. The new rates for these three years is the four-year annual rate that the carrier proposed1

prior to its being selected in Order 2011-12-17, December 22, 2011. As outlined in that Order, 

the Department directed Air Choice One to establish an electronic ticketing and baggage 

agreement with a major airline with a hub operation at Chicago O’Hare International Airport 

(“Chicago O’Hare”) or Lambert-St. Louis International Airport (“St. Louis”). The new 

agreement, which established this connectivity in several global distribution systems and online 

travel agency websites (“OTAs”) on December 2, 2012, meets the requirement in advance of the 

January 31, 2013, deadline that the Department set to accomplish those requirements.2

Background

By Order 2011-12-17, December 22, 2011, Air Choice One was selected to serve Burlington and 

Decatur, for a one-year period, subject to extension of an additional three years if the distribution 

 1 The carrier’s full proposals can be accessed via www.regulations.gov.

2 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds.
requirements were met. At Burlington, service was to consist of 24 weekly nonstop round trips 

(12 nonstops per week to Chicago O’Hare and 12 to St. Louis). At Decatur, service was to 

consist of 36 weekly nonstop round trips (18 nonstops per week to Chicago O’Hare and 18 to St. 

Louis). All service was to be operated with 9-seat Cessna Grand Caravan aircraft. 

Decision

Since Air Choice One fully implemented its distribution capabilities in advance of the 

January 31, 2013, date as described in Order 2011-12-17, we will extend Air Choice One’s 

service period by three years, from February 1, 2013, through January 31, 2016, at the rates fully 

described in Order 2011-12-17. We are selecting Air Choice One to provide the current level of 

service, with 9-seat Cessna Grand Caravan aircraft. At Burlington, 24 weekly nonstop round 

trips (12 nonstops per week to Chicago O’Hare and 12 to St. Louis). At Decatur, 36 weekly 

nonstop round trips (18 nonstops per week to Chicago O’Hare and 18 to St. Louis).

This order is issued under authority delegated in 49 CFR Part 1.56a(f).

ACCORDINGLY,

1. We select Multi-Aero, Inc. d/b/a Air Choice One, to provide Essential Air Service at 

Burlington, Iowa, and Decatur, Illinois;

2. We set the final rates of compensation for Multi-Aero, Inc. d/b/a Air Choice One, for the 

provision of Essential Air Service at Burlington, Iowa, and Decatur, Illinois, as described in 

Appendix B;

3. We direct Multi-Aero, Inc. d/b/a Air Choice One 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. These dockets will remain open until further order of the Department; and
-3-

5. We will serve copies of this order on the mayors of Burlington, Iowa, and Decatur, Illinois, 

and the airport managers of Southeast Iowa Regional Airport (Burlington) and Decatur Airport, 

and Multi-Aero, Inc. d/b/a Air Choice One.

By:

SUSAN L. KURLAND

Assistant Secretary for

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®.

ompletion Ra
Appendix B

Page 1 of 2

Multi-Aero, Inc. d/b/a Air Choice One

Essential Air Service to be Provided at Burlington, Iowa

Effective Period: February 1, 2013, through January 31, 2016

Scheduled Service: 12 weekly nonstop round trips to Chicago O’Hare and 12 weekly nonstop round 

trips to Lambert-St. Louis International Airport

Intermediate stops and upline service: Nonstop service only

Aircraft: Cessna Grand Caravan, 9 seats

Rate per Eligible Flight: $7841

Weekly Ceiling: $37,6322

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 complete, 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 order beyond March 31, 2013. The Department’s obligation 

for performance under this order beyond March 31, 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 Department for any payment may arise for 

performance under this order beyond March 31, 2013, until funds are made available to the Department for 

performance. If funds are not made available for performance beyond March 31, 2013, 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 must be submitted within 60 days of the last day of service provided under this order.

 1 Annual compensation of $1,917,566, divided by 2,446 annual departures (48 weekly departures x 52 weeks x 98 

percent completion).

2 48 arrivals and departures per week multiplied by $784.
Appendix B

Page 2 of 2

Multi-Aero, Inc. d/b/a Air Choice One

Essential Air Service to be Provided at Decatur, Illinois

Effective Period: February 1, 2013, through January 31, 2016

Scheduled Service: 18 weekly nonstop round trips to Chicago O’Hare and 18 weekly nonstop round 

trips to Lambert-St. Louis International Airport

Intermediate stops and upline service: Nonstop service only

Aircraft: Cessna Grand Caravan, 9 seats

Rate per Eligible Flight: $7271

Weekly Ceiling: $52,3442

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 complete, 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 order beyond March 31, 2013. The Department’s obligation 

for performance under this order beyond March 31, 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 Department for any payment may arise for 

performance under this order beyond March 31, 2013, until funds are made available to the Department for 

performance. If funds are not made available for performance beyond March 31, 2013, 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 must be submitted within 60 days of the last day of service provided under this order.

 1 Annual compensation of $2,667,922, divided by 3,669 (72 weekly departures x 52 weeks x 98 percent completion).

2 72 arrivals and departures per week multiplied by $727.