Or der: 20 1 2

- 12

- 23

Served : December 31 , 20 1 2



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 31 st of December , 20 12

Essential Air S ervice at

BURLINGTON, IOWA

DECATUR

, ILLINOIS

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

- O ST

- 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 E ssential A ir S ervice (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 rate s for these three years is the four

- year annual rate that the carr ier proposed 1 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 Chi cago O’Hare International Airport (“Chicago O’Hare”) or Lamber t

- St. Louis International Airport (“S t. Louis ”) . The new agreement, which established this connectivity in several global distribution systems and o nline

t ravel agency websites (“OTAs”) on Dece mber 2, 2012, meets th e requirement in advance of the January 31, 2013

, deadline that the Department set to accomplish those requirements

. 2

Background By Order 20 11

- 1 2

- 1 7

, 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 proposal s 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 C hicago 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

Si nce Air Choice One fully implemented its distribution capabilities in advance of the January 31, 2013

, date as described in Order 2011

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- 17, we will extend Air Choice One’s service period by three years, from February 1, 2013, through January 31, 2016, a t 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 E ssential A ir S ervice at Burlington, Iowa, and Decatur, Illinois ;

2 . We set the final rate s of compensation for Multi

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

, for the provision of E ssential A i r S ervice 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 t hat 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 sup ported under the terms of this O rder;

4 . Th ese docket s 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.govAppendix A



## AREA MAP

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## ompletion RaAppendix 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, 201 3 , through January 31, 2016

Scheduled Service : 1 2 weekly nonstop r ound 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: $ 784 1
Weekly Ceilin g : $ 3 7,632 2

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 significan t elements of the required service, without prior approval. The carrier understands that an air craft 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 conside red 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 circum stances 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 w ill 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 t he 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 Depar tment 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

s ubsidy 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

. T he 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 f oregoing 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 depar tures 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, 201 3 , 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: $ 7 27 1
Weekly Ceiling : $ 5 2,344 2

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 significan t elements of the required service, without prior approval. The carrier understands that an air craft 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 conside red 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 circum stances 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 w ill 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 t he 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 Depar tment 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

s ubsidy 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

. T he 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 f oregoing 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

.