Order: 2014-12-13

Served: December 23, 2014

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 December, 2014

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is requesting proposals from carriers interested in 

providing Essential Air Service (EAS) at Adak, Alaska, for a new contract period, 

beginning October 1, 2015, with or without subsidy. (See Appendix A for a map). 

Carriers should file their proposals no later than February 11, 2015.

Background

By Order 2013-7-14, issued July 16, 2013, the Department selected Alaska Airlines, Inc. 

(Alaska Airlines), to provide subsidized EAS at Adak, Alaska, from October 1, 2013, 

through September 30, 2015. Under that Order, Alaska Airlines provides Adak with two 

nonstop round trips per week to Anchorage. Service is provided with Boeing 737-400 

aircraft at an annual subsidy rate of $2,057,114.

In this instance, the Department is providing a longer period of time for carriers to 

prepare and submit proposals. Adak’s remoteness and other unique aspects create 

challenges that make it more difficult to develop a comprehensive service proposal. In 

addition, in order to comply with Federal Aviation Administration runway safety area 

standards, significant airfield modifications will go into effect on October 1, 2015 that 

may impact carriers’ proposals. These modifications include the closing of the crosswind 

runway (RWY 18-36) and displacing the west threshold of the main runway 

(RWY 05-23) 600 feet to the east, effectively shortening the main runway by 600 feet. 

Therefore, the Department is providing additional time to allow for carriers, the 

community, and the State of Alaska to communicate with each other and investigate 

various service options.

Request for Proposals

The Department is here requesting proposals from carriers interested in providing EAS at 

Adak, Alaska, with or without subsidy, for a new contract period beginning 

Essential Air Service at

ADAK, ALASKA

Under 49 U.S.C. §41731 et seq.

DOCKET DOT-OST-2000-8556
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October 1, 2015. Carriers should file their proposals no later than February 11, 2015. 

Staff will then docket the proposals, thereby making them public. Shortly afterwards, the 

Department will provide a summary of the proposals to the community and the State and 

ask them to submit their final comments. The Department will give full 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, the Department retains

the discretion to negotiate proposals with carriers when deemed desirable. The 

Department also retains 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 the rule.

The Department is 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. The Department expects 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, the 

Department recommends they include information concerning proposed schedules and 

projected block hours. In addition, applicants are urged to provide financial data 

supporting their subsidy requests, including information on their projected expenses and 

revenues. The Department strongly encourages clear, well-documented proposals that 

will facilitate their evaluation by the affected communities and the Department.2

With respect to Adak, the Department expects proposals consisting of service consistent 

with what the community currently receives, namely two nonstop round trips per week to 

Anchorage with large jet aircraft, or more frequent service with smaller aircraft to a 

suitable regional hub airport. The Department encourages proposals that meet these 

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 (e.g., a different 

length of contract) with subsidy requirements that remain competitive. The Department 

 1 Carriers should not expect the Department to accept late fillings. In cases where a carrier proposes to 

provide EAS without subsidy and we determine that service can be reliably provided without such 

compensation, we typically 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 EAS for an eligible place in Alaska, 49 U.S.C. § 41733(c)(1) 

directs us to consider six factors: (a) service reliability; (b) contractual and marketing arrangements with a 

larger carrier at the hub; (c) interline arrangements with a larger carrier at the hub; (d) community views, 

giving substantial weight to the views of the elected officials representing the users; (e) whether the carrier 

has included a plan in its proposal to market its service to the community; and (f) the experience of the 

applicant in providing, in Alaska, scheduled air service or significant non-scheduled service. In addition, 

the Consolidated Appropriations Act, 2012, Public Law 112-55, and continued by the Consolidated and 

Further Continuing Appropriations Act, 2015, Public Law No. 113-235, 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 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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encourages carriers to work with the community as they prepare their proposals in order 

to craft them to best meet the communities’ needs. As always, the Department will fully 

consider the community’s views before making a long-term carrier decision.

Filing Procedures

Carrier proposals should be submitted to the Department with all materials compiled into 

a single document. In addition, because the document will be published on 

http://www.regulations.gov/, each page should be formatted to be viewed online and for 

easy printing.

Service and Traffic History

In order to assist carriers in making their traffic and revenue projections, the Department

has included historical traffic data in Appendix B. For the year ended 

September 30, 2014, the most recent annual period for which data are available, Adak

generated 4,057 passengers, as well as 579,480 pounds of freight and 141,411 pounds of 

mail.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing 

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

carriers receiving Federal subsidy for EAS 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 rate-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 (202) 366-5903.4

Community and State Comments

The community and State are welcome to submit comments at any time. As noted earlier, 

the Department will provide a copy of the proposals to the civic parties and ask them to 

submit their final comments shortly after February 11, 2015, the due date for proposals.

This Order is issued under authority delegated in 49 CFR 1.25a(b) 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 of 

Transportation -- Effectuation of title VI of the Civil Rights Act of 1964; (3) 49 CFR Part 27 --

Nondiscrimination on the basis of disability in programs and activities receiving Federal financial 

assistance; (4) 14 CFR Part 382 -- Nondiscrimination on the basis of disability in air travel; (5) 

2 CFR Parts 180 and 1200 -- Government-wide debarment and suspension (non-procurement); and (6) 49 

CFR Part 32 -- Government-wide requirements for drug-free workplace (financial assistance).

4 The certifications are also available on the web at http://www.dot.gov/policy/aviation-policy/smallcommunity-rural-air-service/essential-air-service. 
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ACCORDINGLY,

1. The Department requests that carriers interested in providing EAS at Adak, Alaska, 

submit their proposals, with or without subsidy requests, no later than February 11, 2015. 

The proposals should be e-mailed to: EAS@dot.gov with the title “Proposal to Provide 

Essential Air Service at Adak, Alaska, Docket DOT-OST-2000-8556”;5

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

3. The Department will serve copies of this Order on the community of Adak, Alaska, 

the Alaska Department of Transportation and Public Facilities, and the service list for this 

docket.

Persons entitled to petition the Department for review of this Order under the 

Department’s Regulations, 14 CFR 385.31(a), must file such petitions within seven (7)

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

at http://www.regualtions.gov

 5 Questions regarding filings in response to this Order may be directed to A.J. Muldoon at (202) 366-1058 

or albert.muldoon@dot.gov. 
APPENDIX A

SERVICE AREA MAP
APPENDIX B

Page 1 of 2

Historical Traffic at Adak, Alaska6

Year Month Passengers Freight Mail Passengers Freight Mail Passengers Freight Mail

2011 1 89 2,984 548 97 13,766 7,383 186 16,750 7,931

2011 2 85 3,435 880 84 13,748 13,879 169 17,183 14,759

2011 3 121 20,929 789 114 16,818 13,648 235 37,747 14,437

2011 4 88 14,941 203 102 20,239 8,955 190 35,180 9,158

2011 5 146 12,301 1,084 146 34,674 15,132 292 46,975 16,216

2011 6 139 15,505 2,569 177 28,062 9,462 316 43,567 12,031

2011 7 176 47,748 2,250 190 52,626 11,657 366 100,374 13,907

2011 8 232 3,013 885 187 27,185 25,982 419 30,198 26,867

2011 9 176 19,223 1,346 188 27,414 12,017 364 46,637 13,363

2011 10 230 18,682 796 240 24,393 12,131 470 43,075 12,927

2011 11 180 3,348 574 157 18,927 16,104 337 22,275 16,678

2011 12 183 4,387 831 174 15,472 10,340 357 19,859 11,171

Total 2011 1,845 166,496 12,755 1,856 293,324 156,690 3,701 459,820 169,445

2012 1 131 10,428 1,012 129 28,844 14,400 260 39,272 15,412

2012 2 101 12,431 747 266 23,929 10,138 367 36,360 10,885

2012 3 187 47,493 1,054 181 29,730 14,085 368 77,223 15,139

2012 4 268 8,779 2,020 116 34,949 18,939 384 43,728 20,959

2012 5 172 42,627 3,560 182 36,814 10,749 354 79,441 14,309

2012 6 223 67,141 614 234 27,898 13,383 457 95,039 13,997

2012 7 190 72,208 596 175 34,772 16,683 365 106,980 17,279

2012 8 215 38,070 1,221 243 36,932 12,282 458 75,002 13,503

2012 9 161 45,548 538 133 21,422 17,604 294 66,970 18,142

2012 10 146 19,622 484 150 15,385 8,849 296 35,007 9,333

2012 11 204 14,764 1,050 190 14,250 10,642 394 29,014 11,692

2012 12 197 2,509 585 197 15,021 14,633 394 17,530 15,218

Total 2012 2,195 381,620 13,481 2,196 319,946 162,387 4,391 701,566 175,868

Adak to Anchorage Anhorage to Adak Total O&D

 6 Source: Bureau of Transportation Statistics; Form 41, Schedule T-100 Report. 
APPENDIX B

Page 2 of 2

Year Month Passengers Freight Mail Passengers Freight Mail Passengers Freight Mail

2013 1 103 4,036 658 129 14,539 8,990 232 18,575 9,648

2013 2 66 13,677 926 154 21,281 11,183 220 34,958 12,109

2013 3 102 30,177 1,364 110 31,972 13,112 212 62,149 14,476

2013 4 209 30,341 788 167 30,133 15,160 376 60,474 15,948

2013 5 141 14,163 806 172 30,327 16,383 313 44,490 17,189

2013 6 186 16,972 1,258 193 34,484 14,315 379 51,456 15,573

2013 7 170 44,658 1,347 174 46,624 12,792 344 91,282 14,139

2013 8 224 70,789 1,667 195 38,334 14,401 419 109,123 16,068

2013 9 183 43,345 4,215 122 23,094 12,415 305 66,439 16,630

2013 10 187 19,522 2,567 148 22,642 12,499 335 42,164 15,066

2013 11 137 2,553 1,289 130 9,232 6,441 267 11,785 7,730

2013 12 165 206 539 188 14,698 7,728 353 14,904 8,267

Total 2013 1,873 290,439 17,424 1,882 317,360 145,419 3,755 607,799 162,843

2014 1 155 1,513 1,164 239 31,412 9,180 394 32,925 10,344

2014 2 100 2,086 843 252 38,113 9,612 352 40,199 10,455

2014 3 238 1,416 962 123 29,120 10,102 361 30,536 11,064

2014 4 184 5,608 1,077 135 27,431 15,706 319 33,039 16,783

2014 5 180 57,143 1,397 183 21,999 10,594 363 79,142 11,991

2014 6 156 32,929 1,825 145 29,320 9,445 301 62,249 11,270

2014 7 126 67,881 926 138 26,735 12,228 264 94,616 13,154

2014 8 257 72,839 1,813 214 35,523 15,083 471 108,362 16,896

2014 9 153 18,844 2,160 124 10,715 6,231 277 29,559 8,391

Total YTD-2014 1,549 260,259 12,167 1,553 250,368 98,181 3,102 510,627 110,348

Adak to Anchorage Anhorage to Adak Total O&D
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 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 may not be available for performance under this Order beyond [DATE]. The 

Government’s obligation for performance under this Order beyond [DATE], is subject to the 

availability of 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 the Department for performance. If sufficient funds are not 

made available for performance beyond [DATE], 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, including any amended claims, must be submitted within 90 days of the 

last day of the month for which compensation is being claimed. For example, claims for service 

provided in July must be filed by October 31st; August claims must be submitted by November 

30th, and so on.