Order 2012

- 4

- 3

Served: A pril 3, 2012



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 3 rd day of April , 20 12

Essential Air Service at

BAR HARBOR, MAINE PRESQUE ISLE /HOULTON , MAINE PLATTSBURGH, NEW YORK

Under 49 U.S.C. 41731 et seq

. DOCKET DOT

- OST

- 2011

- 0185

DOCKET DOT

- OST

- 2000

- 8012

DOCKET DOT

- OST

- 2003

- 14783



### ORDER EXTENDING SERVICE OBLIGATION Summary

By this O rder, the Department of Transportation extends the Essential Air Service (EAS)

o bligation of Colgan Air, Inc., operating as US Airways Express (Colgan)

, at Bar Harbor and Presque Isle

, Maine, and Plattsburgh, New York, for an additional 30 days, through May 6

, 2012

.

Background

By the three Orders listed in the chart, t he Department selected Colgan to prov ide subsidized

EAS at the communities summarized below:

Community Annual Subsidy Order Thru Hub Weekly

Round Trips Stops Aircraft

1. Bar Harbor $2,298,533 2010

- 9

- 28 10/31/12 BOS 14 0 Saab 340

2. Plattsburgh $2,117,101 2010

- 3

- 27 06/30/12 BOS 12 0 Saab 340

3 Presque Isle $2,812,853 2010

- 6

- 5 05/31/12 BOS 19 0 Saab 340

On September 9, 2011, Colgan filed a 90

- day notice with the Department o f its intent to

terminate its subsidized service at the above

- mentioned communities, effective

December 8, 2011. By Order 2011

- 11

- 26, issued November 22, 2011, the Department prohibited Colgan from suspending service through January 7, 2012, and requested proposals from carriers interested in providing replacement service.2

By Order 2012

- 3

- 2, March 2, 2012, the Department selected Peninsula Airways (PenAir) to provide EAS at Presque Isle and Plattsburgh, and Hyannis Air Service Inc., operating as Cape Air (Cape Air), to jointly provide EAS at Bar Harbor. We expect that Cape Air will inaugurate

service at Bar Ha rbor on or about April 15, 2012. W e do not have definitive start dates for Presque Isle or Plattsburgh. Therefore, we will extend Colgan ’s service obligation at all three

communities for an additional 30 days, or un til replacement service begins, whichever occurs first, i n acc ordance with 49 U.S.C. 41734(c).

This Order is issued under authority assigned in 14 CFR 385.12(k)(5).

ACCORDINGLY,

1. We require Colgan Air, Inc. to provide the level of service at Bar Harbor and Presque Isle, Maine, and Plattsburgh, New York , as set forth in Order 2011

- 11

- 26 , for an additional 30

- day period through May 6

, 2012 , or until a carrier ca pable of providing reliable EAS actually begins

service, whichever is first ; 1

2. We direct Colgan Air, Inc. to retain all books, records, and other source and summary documentation to support subsidy claims for payment, and to preserve and maintain such documentation in a manner that readily permits its audit and examination by representatives of the Department . Such documentation shall be retained for seven years from the service date of

this O rder 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;

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

1 In accordance with 49 U.S.C. 41734(c), we will extend Colgan’s service obligation for s uccessive 30

- day periods as necessary until replacement service actually begins.3

4. We will serve copies of th is O rder on the Mayor s and Airpor t Managers of Bar Harbor, Presque Isle, Maine, and Plattsburgh, New York, and Colgan Air, Inc

.

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 petitio ns within ten (10) days

after the date of service of this order.

This O rder 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 www.regulations.gov