Order 2012-3-14

Served: March 23, 2012

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 23rd day of March, 2012

Ninety-day Notice of Colgan Airlines, Inc.

Of termination of Essential Air Service at:

Altoona, Pennsylvania

Johnstown, Pennsylvania

Victoria, Texas

Staunton, Virginia

Beckley, West Virginia

Clarksburg/Fairmont, West Virginia

Morgantown, West Virginia

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

DOCKET DOT-OST-2002-11446

DOCKET DOT-OST-2002-11451

DOCKET DOT-OST-2005-20454

DOCKET DOT-OST-2002-11378

DOCKET DOT-OST-1997-2761

DOCKET DOT-OST-2005-20736

DOCKET DOT-OST-2005-20735

 

ORDER PROHIBITING SUSPENSION OF SERVICE

AND REQUESTING PROPOSALS

Summary

By this Order, the Department prohibits Colgan Airlines, Inc. d/b/a United Airlines Express 

(“United Express”), from terminating service at Altoona and Johnstown, PA; Victoria, TX; 

Staunton, VA; and Beckley, Clarksburg/Fairmont, and Morgantown, WV, for 30 days beyond 

the end of the 90-day notice period, i.e. July 8, 2012. We are also requesting proposals by 

April 25, 2012, from air carriers interested in providing replacement Essential Air Service 

(“EAS”) at Victoria, TX; and Staunton, VA, for a new term, with or without subsidy. 

Background

By Order 2012-2-9, issued on February 14, 2012, the Department requested proposals from air 

carriers interested in providing EAS at Altoona and Johnstown, PA, for a new term beginning 

July 1, 2012, with or without subsidy. Those proposals were due by March 14, 2012. 

Additionally, by Order 2012-2-16, issued on February 23, 2012, the Department requested 

proposals from air carriers interested in providing EAS at Beckley, Clarksburg/Fairmont, 
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and/or Morgantown, WV, for a new term beginning August 1, 2012, with or without subsidy. 

Those proposals are due by April 3, 2012.

On March 8, 2012, United Express filed notice of its intent to terminate its currently subsidized 

service at the seven above-captioned communities, effective June 8, 2012. 

Hold-In

United Express’s proposed terminations of service at the above communities would cause 

service levels to drop below the EAS guarantee levels established by the Department. Thus, 

the Department must prohibit the air carrier from terminating such service at the end of its 90-

day notice, i.e. June 8, 2012. We will require United Express to continue to maintain that level 

of service at the above communities, for successive 30-day periods until we have completed1

processing the air carrier-replacement case and the selected air carrier has actually started 

service. 

Request for Proposals at Victoria, Texas, and Staunton, Virginia

Air carriers should file their proposals no later than April 25, 2012. After that date, our staff 

will docket the proposals, thereby making them public, and shortly afterwards will provide a 

summary of the proposals to the communities and ask them for their final comments. We will 

give full consideration to all proposals filed in a timely manner. 

Interested air 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 negotiate 

proposals with air 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 air carriers with basic information to serve as guidance when 

they prepare their proposals, but we will not prescribe an exact format. 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 

community and the Department.2

 1 In accordance with 49 U.S.C. 41734(c), we will extend United Express’s service obligation for successive 30-

day periods as necessary until replacement service actually begins. 

2 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 an air 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 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 provisions.
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Air 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 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 airlines.

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 

have provided a summary of historical passengers at Victoria, TX, and Staunton, VA, in 

Appendix B. During year ended September 30, 2011, Victoria averaged 16 enplanements per 

day and Staunton, 39. We expect service levels that are comparable with what the communities 

currently receive, with service to a large or medium hub that offers access to the national air 

transportation system utilizing twin-engine aircraft. Specifically, two round trips a day (12 a 

week) with 30-seat or larger aircraft; or three round trips a day (18 a week) with 19-seat aircraft 

and additional frequencies with 8/9 seat aircraft. Should the communities agree to singleengine aircraft, in effect waiving their right to twin-engine aircraft, we would consider the 

waiver to apply only for the length of the term of the air carrier-selection at hand, i.e. we would

not assume that the communities would waive their rights for all time. As always, we will 

formally solicit the communites’ views on any service options we receive before making a 

long-term carrier selection decision.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces and nondiscrimination.3 Consequently, all air carriers 

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 air 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. All air carriers that plan to submit proposals involving subsidy should submit the 

required certifications along with their proposals. Interested air carriers 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 submit 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 April 25, 2012, the due date for air carrier proposals.

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

 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 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).

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

1. The Department requests proposals from air carriers interested in providing Essential Air 

Service at Victoria, Texas or Staunton, Virginia, with subsidy if necessary, by April 25, 2012. 

Proposals should include all the data required by section 204.4 of the Department’s Regulations 

(14 CFR 204.4). Proposals should be emailed to EAS@dot.gov and entitled “Proposals to 

Provide Essential Air Service” at (specify which of the two communities your proposal pertains 

and the corresponding docket number). Proposals may be for one or both communities; but air 

carriers should make clear whether or not their proposals can be considered on a stand-alone 

basis. Service should be consistent with that discussed in the body of the Order. Questions 

regarding filing may be directed to Scott Faulk at 202-366-9967;

2. The Department prohibits Colgan Airlines, Inc. a wholly-owned subsidiary of Pinnacle 

Airlines Corporation, d/b/a United Airlines Express, from suspending their service at Altoona 

and Johnstown, Pennsylvania; Victoria, Texas; Staunton, Virginia; and Beckley, 

Clarksburg/Fairmont, and Morgantown, West Virginia; at the end of its 90-day notice period 

and requires it to maintain its current level of service, as specified in the various carrierselection orders,5 through July 8, 2012, or until an air carrier capable of providing reliable 

Essential Air Service actually begins service, whichever comes first;6 

3. These dockets will remain open until further order of the Department; and

4. The Department will serve a copy of this Order on the Mayors and Airport Managers of 

Victoria, Texas, and Staunton Virginia, Colgan Air, Inc., and the service list for these Dockets.

By:

SUSAN L. KURLAND

Assistant Secretary

for Aviation and International Affairs

(SEAL)

An electronic version of this document is available online at

www.regulations.gov

 5 See Order 2010-5-10, issued May 10, 2010, (Altoona, and Johnstown, PA); Order 2011-5-7, issued 

May 5, 2011, (Victoria, TX); Order 2011-3-2, issued March 1, 2011, (Staunton, VA); Order 2010-6-25, issued 

June 29, 2010, (Beckley, Clarksburg/Fairmont, and Morgantown, WV). 

6 In accordance with 49 U.S.C. 41734(c), we will extend the air carrier’s service obligation for successive 30-day 

periods as necessary until replacement service actually begins. 
Appendix A

Page 1 of 2

Area Map

Victoria, Texas
Appendix A

Page 2 of 2

Area Map

Staunton, Virginia
Appendix B

Page 1 of 2

Historical Origin-Destination Plane Traffic1

Victoria, Texas

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per Day

1 2009 1,274 1,333 2,607 17

2 2009 1,405 1,473 2,878 18

3 2009 1,406 1,447 2,853 18

4 2009 1,346 1,372 2,718 17

Annual 

Totals 5,431 5,625 11,056 18

1 2010 1,095 1,208 2,303 15

2 2010 1,270 1,303 2,573 16

3 2010 1,246 1,260 2,506 16

4 2010 1,314 1,267 2,581 16

Annual 

Totals 4,925 5,038 9,963 16

1 2011 920 1,028 1,948 13

2 2011 1,325 1,373 2,698 17

3 2011 1,391 1,447 2,838 18

4 2011 1,400 1,350 2,750 17

Annual 

Totals 5,036 5,198 10,234 16

 1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100.
APPENDIX B

Page 2 of 2

Historical Origin-Destination Plane Traffic1

Staunton, Virginia

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per Day

1 2009 1,851 1,662 3,513 23

2 2009 2,094 2,058 4,152 27

3 2009 2,307 2,181 4,488 28

4 2009 2,442 2,407 4,849 31

Annual 

Totals 8,694 8,308 17,002 27

1 2010 1,912 1,846 3,758 24

2 2010 2,670 2,764 5,434 35

3 2010 2,506 2,383 4,889 31

4 2010 3,638 3,369 7,007 44

Annual 

Totals 10,726 10,362 21,088 34

1 2011 2,620 2,606 5,226 34

2 2011 3,209 3,212 6,421 41

3 2011 2,725 2,570 5,295 34

4 2011 3,691 3,635 7,326 46

Annual 

Totals 12,245 12,023 24,268 39

 1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100.
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.

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 

September 31, 2012. The Department’s obligation for performance under this solicitation 

beyond September 31, 2012, 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 September 31, 2012, until 

funds are made available to the Department for performance. If funds are not made available for 

performance beyond September 31, 2012, 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.