Order 2012

- 10

- 25

Served: O ctober 26, 2012



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 2 6th day of October , 2012

Essential Air Service at

MASSENA, NEW YORK

Under 49 U.S.C. 41731 et seq

. DOCKET DOT

- OST

- 2012

- 0163



### ORDER REQUESTING PROPOSALS

Summary By this O rder, the Departme nt is requesting proposals from airlines interested in providing

Essential Air S ervice (EAS) at Massena

, New York

, with or without subsidy , for a new rate

term beginning April 1, 2013 . Pr oposals are due by November 29

, 2012 . (See Appendix A for a map.)

Background By Order 2011

- 1

- 6, January 7, 2011, the Department re

- selected Hyannis Air Service, Inc. d/b/a Cape Air (Cape Air), to provide Essential Air Ser vice (EAS) at Massena for a two

- year term ending March 31, 2013

, for an annual subsidy rate of $1,708,911. 1

Request for Proposals Air carriers should file their prop osals no later than November 29, 2012

. After that date, our staff will docket proposals, thereby making them public, and shortly afterwards will provide a summary of the proposals to the community and ask them for their final comments. We will give full consideration to all proposals filed in a timely manner.

Interested carriers should prepare their proposals with every expectation that their initial proposals will also be their final and only proposals. We retain the discretion to n egotiate

1 Massena has traditionally been packaged with Ogdensburg and Watertown, New York. Cape Air was selected to provide EAS at Ogdensburg for a four

- year term ending April 30, 2015. See Order 2011

- 1

- 6. Ame rican Eagle Airlines, a wholly owned subsidiary of AMR Corporation, was selected in a separate order to provide EAS at

Watertown for a two

- year term ending November 30, 2013. See Order 2011

- 3

- 34.- 2

-

proposals with carriers when we deem it desirable. We also retain the discretion to reject outright all unreasonable or unrealistic proposals and solicit a new round of 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 are here providing interested carr iers with some basic information to serve as guidance when they prepare their proposals, but we will not prescribe a precise format. We expect proposals to adequately describe the service being proposed and the annual amount of subsidy being requested. T he 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 community and the Department. 2

Carriers are also welcome to propose more than one option, if they choose; they need not limit

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

-- different hubs, frequency or equipment, for example

-- with subsidy requirements that remain competitive. The communities and air carriers are encouraged to work tog ether in advance of the due date for proposals to craft a service pattern that is desirable

to the communit y and meets the operational needs of the airline s

.

Proposals should provide sufficient capacity to accommodate historical levels of traffic. In order to assist carriers in developing traffic and revenue projections for their proposals, we have provided a summar y of historical passengers in Appendix B. During the year ended

June 30

, 2012

, Massena averaged 15 enplanements per day. W e expect ser vice levels that are

c ons istent with what the community currently receive s , with service to any medium

- or large

hub airport that offers access to the national air transportation system utilizing twin

- engine

aircraft

. Specifically, air carriers should propose two round trips a day (12 a week) with 19

- 30

- seat or larger aircraft; or three round trips a day (18 a week) with 8/9

- seat aircraft. As always, we will formally solicit the community ’ s views on any service options we receive

b efore making a long

- term carrier selection decision.

2 In selecting a carrier to provide subsidized EAS

, 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 addi tion, 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 o f the program. Interested carriers should also be aware that our general provisions governing EAS 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 pr ovisions.- 3

-

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

- free workplaces and nondiscrimination. 3 Consequently, all carr iers receiving Federal subsidy to support 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 t he rate term must also certify that they are in compliance with the regulations governing lobbying activities. All carriers that plan to submit proposals involving subsidy should submit the required certifications along with their proposals. Interested c arriers requiring more detailed information regarding these requirements, as well as copies of the certifications, should contact the Office of Aviation Analysis at (202) 366

- 5903. The Department is prohibited from paying subsidy to carriers that

do not s ubmit these documents. 4

Community and State Comments Civic officials are welcome to submit comments on the proposals at any time. As noted earlier, we will provide a summary of the proposals to the civic parties and ask them to submit their final comments shortly after November 29, 2012, the due date for ca rrier proposals.

This O rder 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 air carriers interested in providing Essential Air Service at Massena, New

York

, submit their proposal , with or without subsidy requests, no later than

November 29, 2012 . The proposal should be emailed to: EAS@dot.gov with the title “Proposal to Provide Essential Air Service at Massena, New Yo rk ”; 5

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

3 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 Civi l 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 (non

procurement) and government

- wide requirements for drug

- free workplace (grants).

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

5 Questi ons regarding filings in response to this order should be directed to Michael Martin at 202

- 366

- 6494, or

via email at michael.f.martin@dot.gov

.- 4

-

3. The Department will serve a copy of this O rder on the Mayor and Airport M anager of

Massena ; Hyannis Air Service, Inc. d/b/a Cape Air, and the service list for this Docket

.

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

Aviation Economic Regulations, 14 CFR 385.50, must file such petitions within ten (10) days

aft er the date of service of this O rder.

This O rder will be ef fective 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 line at www.regulations.gov

### Appendix A



## Area Map

Maps generated by the Great Circle Mapper

- copyright © Karl L. Swartz

.

### APPENDIX B

Historical Origin

- Destination Plane Traffic 1



### Massena, New York

Quarter Year Deplanements Enplanements Total
Traffic Enplanements

per Day

3 2009 772 810 1,582 10

4 2009 874 920 1,794 11

1 2010 711 735 1,446 9

2 2010 846 837 1,683 11

Annual

Totals 3,203 3,302 6,505 10

3 2010 841 857 1,698 11

4 2010 904 921 1,825 12

1 2011 706 734 1,440 9

2 2011 1,060 1,107 2,167 14

Annual

Totals 3,511 3,619 7,130 11

3 2011 1,220 1,255 2,475 16

4 2011 1,300 1,300 2,600 16

1 2012 1,044 1,085 2,129 14

2 2012 1,244 1,225 2,469 16

Annual

Totals 4,808 4,865 9,673 15

1 Source: USDOT Bureau of Transportation Statistics, TransStat s Intermodal Database, Schedule T

- 1 00

.

### 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 explanati on 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 con formance 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 rou tes. 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 Departmen t 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 paymen ts 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 c ease 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 constit ute 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 solicitation beyond [DATE] . The Department’s obligation for performance under this soli citation beyond [DATE] , is con tingent 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 t he Department for performance. If funds are not made available for performance beyond [DATE] , the carrier will receive notice in writing by the Department.

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

under this order.