Order 2011

- 3

- 10

Served: March 7 , 2011



### UNITED STATES OF AMERICA

DEPAR TMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 7 t h day of March , 20 11

ORDER REQUESTING PROPOSALS

Summary By this order, the Department is requesting proposals from carriers interested in providing

essential air service (EAS) at Devils Lake and Jamestown, North Dakota, for a new two

year period, beginning Octob er 1, 20 11

, with or without subsidy. (See Appendix A for a service area map )

. Carriers should file their proposals no later than April 6

, 2011

.

Background By Order 200 9

- 8

- 6

, August 1 1 , 200 9 , the Department selected Mesa ba Aviation, Inc

. , d/b/a Mesaba A irlines ( Mesaba )

, operating as Delta Connection, to provide subsidized

EAS at Devils Lake and Jamestown utilizing 34

- passenger Saab 340 aircraft , through September 30 , 20 11

. Under that order

, Mesaba provide s 14 round trips per week between

the two commu ni ties and Minneapolis/St. Paul

. Specifically, the first flight of the day

would be routed Devils Lake

- Jamestown

- Minneapolis/St. Paul and the last flight would be routed Minneapolis/St. Paul

- Jamestown

- Devils Lake, seven days a week. The other seven weekly mid

- day round trips would be routed Minneapolis/St. Paul

- Jamestown

Devils Lake

- Minneapolis/St. Paul. The annual subsidy for the Jamestown service is $1,963,220 and the required annual subsidy for the Devils Lake service is $1,459,493.

Request for Proposa ls

As the end of the current contract approaches, the Department is requesting proposals from carriers interested in providing service at Devils Lake and/or Jamestown

, with or without subsidy, for the two

- year period beginning October 1 , 20 11

. Carriers sh ould file their proposals no later than April 6

, 2011

. Staff will then docket proposals, thereby making them public, and shortly afterwards will provide a summary of the proposals to Essential Air Service at

DEVILS LAKE AND JAMESTOWN,

NORTH DAKOTA

Under 49 U.S.C. 41731 et seq

. D ocket DOT

- OST

- 1997

- 2785- 2

-

the communit ies and ask them for their final comments. We will give fu ll consideration to all proposals that are timely filed. 1

Interested carriers should prepare their proposals with every expectation that their initial proposals will represent their final and only proposals. However, we retain the discretion to negotiate proposals with carriers when we deem it desirable. We also retain the discretion to reject outright all unreasonable or unrealistic proposals and re

- solicit a new round of proposals. However, negotiation and rejection are only occasional exceptions to

t he 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. 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 subsid y requests, such as projected block hours, revenues and expenses. We strongly encourage clear, well

documented proposals that will facilitate their evaluation by the affected communit ies and the Department. 2

With specific respect to Devils Lake and James town

, the Department expects proposals consisting of three nonstop or one

- stop round trips a day between each community and Minneapolis/St. Paul utilizing 19

- seat aircraft , or two nonstop or one

- stop round trips a day between each community and Minneapolis /St. Paul with 30

- seat or larger aircraft

. Such service is co nsistent with what the communities currently receive, and fully satisfies

their essential air service requirements. We encourage proposals that meet those requirements in an efficient manner. Carriers are also welcome to propose more than one service option, if they choose; they need not limit themselves to those requirements if they envision other, potentially more attractive service possibilities

-- different hubs, for example

-- with subsidy requirements that remain competitive.

1 Carriers should not expect the Department to accept late fillings. In cases where a carrier proposes to provide essentia l air service without subsidy and we determine that service can be reliably provided without such compensation, we do not proceed with the carrier

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

- free service as proposed.

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 a carrier to provide EAS, the Department may consider the relative subsidy requirements, thus codifying a factor that we have considered sinc e 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 servic e. Appendix C of this order contains those general provisions.- 3

-

Service and Traffic History

Mesaba has served Devils Lake and Jamestown since 2003

, and historical traffic is detailed in Appendix B. F rom January 1 through November 31, 2010

, Devils Lake averaged 13.3 enplaneme nts a day

, and Jamestown averaged 12.3

, both trending up ward

.

New Filing Procedures 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 Regulatio ns.gov, each page should be formatted to be viewed online.

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

- free workplaces, and nondiscrimination. 3 Consequently, all

c arriers receiving Federal subsidy for 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

the r ate

- term must also certify that they are in compliance with the regulations governing lobbying activities. Because the Department is prohibited 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 carriers requiring more detailed information regarding these requirements should contact the Office of Aviation Analysis at (2 02) 366

- 5903. 4

Community and State Comments

The communit ies and State are welcome to submit comments at any time. We encourage prospective applicants to contact the communit ies before they submit their proposals so that they can tailor them to the commun it ies ’ needs, as they will not be able to amend them after the due date. As noted earlier, we will provide a summar y of the proposals to the civic parties and ask them to submit their final comments shortly after

, April 6

, the

end of the 30

- day period for carrier proposals.

This order is issued under authority delegated in 49 CFR 1.56a(f) and re

- delegated to the Director, Office of Aviation Analysis

.

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 o f 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

-- Nondisc rimination 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.- 4

-

ACCORDINGLY, 1. We request that carriers interested in providing essential air service at Devils Lake and

Jamestown

, North Dakota

, submit their proposals, with or without subsidy requests, no

later than April 6

, 2011 . The proposals should be e

- mailed to: EAS@dot.gov with the title with the title “Proposal to Provide E ssential Air Service at Devils Lake and Jamestown, North Dakota , Docket DOT

- OST

- 1997

- 2785” ; 5

2

. Th is docket will remain open until further order of the Department; and

3 . We will serve copies of this order on the Mayors and Airport Managers of Devils L ake and Jamestown, North Dakota; the Director, North Dakota Aeronautics Commission; and

the partie s listed in Appendix D

.

Persons entitled to petition the Department for review of this order under the Department’s Regulations, 14 CFR 385.50, must file suc h petitions within ten (10) 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

on the World Wide Web at http://www.regulations.gov

5 Questions regarding filings in response to this order may be directed to Brian Swanson at (202) 366

- 5392

or brian.swanson@dot.gov

.Appendix A



### AREA MAPAppendix B

No tes : 1. Source: US DOT Bureau of Transportati on Statistics, Form s T

- 100 , and 298

- C,

Schedule T

- 1 for Mesaba Airlines and Great Lakes Aviation

. 2. Origin

- destination passengers divided by two.

3. Average annual enplanements divided by 313 effective annual service days, except

for annu al periods ended 12/31/ 2008 (314 effective annual service days) and from 1/1/2010 through 11/20.2010 (334 effective annual service days)

. Year Ended Origin &

Destination Passengers Annual
Enplanements 2 Average Enplanements Per
Service Day 3

31-Dec-05 5,120 2,560 8.2

31-Dec-06 6,455 3,228 10.3

31-Dec-07 6,687 3,344 10.7

31-Dec-08 6,033 3,017 9.6

31-Dec-09 7,001 3,501 11.2

1/1/2010 - 11/30/2010 8,867 4,434 13.3

Year Ended Origin &

Destination Passengers Annual
Enplanements 2 Average Enplanements Per
Service Day 3

31-Dec-05 5,729 2,865 9.2

31-Dec-06 4,717 2,359 7.5

31-Dec-07 4,399 2,200 7.0

31-Dec-08 5,592 2,796 8.9

31-Dec-09 7,084 3,542 11.3

1/1/2010 - 11/30/2010 8,203 4,102 12.3 Historical Enplanements 1
Jamestown, North Dakota Historical Enplanements 1
Devils Lake, North DakotaAppendix C

Example of General Terms and Conditions for Essential Air Service

The carrier understands that it may forfeit its compensation for any flig hts 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 th at 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

ar e 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 con templates 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. Shou ld 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 compens ated. 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 prov ided 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 whic h 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 so licitation beyond [DATE] . The Department’s obligation for perform ance under this solicitation beyond [DATE] is contingent upon the availability of appropriated funds from which payment for services can be made. No legal liability on the part of the Depar tment for any payment may arise for performance under this order beyond [DATE] , until funds are made available to the 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 se rvice provided

under this order.Appendix D

SERVICE LIST

Air Greco/Wings Air Frontier Airlines, Daniel Shurz Pacific Aviation Group, Craig Garrick

Air Sunshine, Inc. Fron tier Flying, Bob Hajducovich Pacific Aviation Group, Ron Rye

Air Sunshine, Mirmohammad Adili Frontline Aviation Pacific Wings, Frank Ford

Air West, Inc., John Raatz Gem Air, Dan Schroeder Pacific Wings, Greg Kahlstorf

Air Wisconsin, Annette Daly Gem Air , JoAnn Wolters Penn Air, Danny Seybert

Air Wisconsin, Jim Rankin Great Lakes Airlines, Chuck Howell Penn Air, Scott Bloomquist

Airline Associates, Bill Mishk Great Lakes Airlines, Doug Voss Pinnacle Airlines, Jennifer Gammill

Alaska Airlines, Jeff Cole Gulfstream, Dave Hackett Pinnacle Airlines, Megan Rosia

Alaska Airlines, Sandy Sinick Gulfstream, Mickey Bowman Pinnacle Airlines, Phil Reed

Allegiant Air, Brian Davis Gulfstream, T. Cooper Planemasters, Inc., John Kessler

American Airlines, Carl Nelso n Homeland Security, Bill Ragan Planemasters, Inc., Paul Berliner

American Eagle, Jeff Hartz Homeland Security, David Bernier Planemasters, Inc., Todd DeSimone

Atlantic Southeast, Jon Lindlief Horizon Air, Dan Russo Raytheon, Mike Schiedt

Atlantic Sout heast, Roger Weston Horizon Air, Jennifer Thompson Saab Group, Polly Prelinger
Aviation Technologies/Charter Air Transport, Jim Gallagher Horizon Air, Mike McQeen Scenic, Mary Schneider

Bemidji Aviation, Arlen Rinkenberger Horizon Air, Jeff Cole Scenic, Mitzi Daines

Bemidji Aviation, Cori Rude ICEPR, Luis Irizarry Seaborne Airlines, Shawn Lewis

Cape Air, Andrew Bonney Intrepid Internatl Air, Rick Eyk Seaport, Daniel Helland

Cape Air, Dan Wolf Island Air Charters, Linda House SeaPort Airlines. Jim Day

Cape Air, J. Flaherty Jet Air, Daniel Wolford SeaPort Airlines, Nate Vallier

Classic Aviation, Tony Henderson Kenmore Air, Tim Brooks SeaPort Airlines. Rob McKinney

Colgan Air, Kevin Scott McCall Aviation, Dan Scott Shuttle America, Jerry Balsano

Colgan Air, Mike Colgan McCall Aviation, Michelle SkyWest, Brad Rawson

CommutAir, Andy Price Mesaba, John Spanjers SkyWest, Eric Christensen

CommutAir, Joel Raymond Mesaba, Max Shemesh SkyWest, Michael Thompson

Consultant, Robert Silverberg Midstar Airlines, Jeffrey Fonner Sovereign Air, Bob Karns

Continental, Bruce Keiner Midwest Airlines, Greg Aretakis Sovereign Air, Lois R. Barton

Continental, Dan Weiss MN Aviation, Jose Maldonado Tatonduk, Robert Everts

Continental, Lorry Halloway Multi Aero, Darnea Tat onduk, Robert Ragar

Delta Air Lines Anthony Canitano Multi Aero, Shane Storz Tradewind, Eric Zipkin

Delta Air Lines, Dan Shuman Northern Air Cargo, David Karp Transport Azumah, Joel Anabilah

Azumah
Delta Air Lines, Jeff Morgan Northern Air Cargo, Eric Van Andel Trans States, Fred Oxley

Delta Air Lines, Joe Esposito Northwest Airlines, Aaron Murray Trans States, Gerry Wigmore

Delta Air Lines, Sascha Vanderbellen Northwest, Tim McDonald United, Alicia Gabriel

Delta Air Lines, Karen Zachary NYDC, Henok Araya United, James Starnes

Delta Air Lines, Kristal Murphy OST, Brian Swanson US Airways, Benjamin Slocum

Dorado Jets OST, Dennis DeVany US Airways, Howard Kass

Dorado Jets, Mark McKenna OST, Kevin Adams US Airways, Jason Reisinger

Era Aviation, Lori Goodman OST, Kevin Schlemmer Warbelows Air Ventures, Art

Warbelow

Executive Airlines, Kate Soled OST, Michael Martin ND Aeronautics Commission, Larry Taborsky

ND Aeronautics Commission, Bradley Fields Jamestown Regional Airport, Matthew

Leitner City of J amestown, Mayor Anderson

City of Devils Lake, City Commission President, Richard Johnson Devils Lake Regional Airport, John Nord