Order 2014-11-2

Served: November 5, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 5th day of November, 2014

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is soliciting proposals from air carriers interested in providing 

Essential Air Service (EAS) at West Yellowstone, Montana, for a new contract term, beginning 

June 1, 2015, with or without subsidy. Air carriers should file their proposals no later than 

December 18, 2014. (See Appendix A for a service area map.) 

Background

By Order 2013-5-4 (May 2, 2013), By this Order, the Department re-selected SkyWest Airlines 

(“SkyWest”) to provide EAS at West Yellowstone, Montana, at an annual subsidy rate of 

$535,141, for the two summer seasons from June 1 through September 30, 2013, and June 1 

through September 30, 2014. SkyWest operated 14 nonstop round trips to Salt Lake City 

International Airport using 30-seat Embraer Brasilia (EMB-120) aircraft.

The complete public file for EAS at this community may be accessed online through the Federal 

Dockets Management System at: www.regulations.gov by entering docket number, DOT-OST2003-14626, in the “SEARCH for: Rules, Comments, Adjudications or Supporting Documents:” 

field.

Request for Proposals

As the current contract has ended, the Department is requesting proposals from air carriers 

interested in providing service at the above mentioned communities, for a new contract term for 

one or more summer seasons beginning June 1, 2015,1 with or without subsidy. Air carriers 

should file their proposals no later than December 18, 2014. After that date, our staff will then 

docket the proposals, thereby making them public, and direct each air carrier to serve a copy of 

 1 The summer season runs from June 1 through September 30 each year.

Essential Air Service at

WEST YELLOWSTONE, MONTANA

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

Docket DOT-OST-2003-14626
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its proposal on the civic parties and other applicants. Shortly thereafter, we will provide a 

summary of the proposals to community officials and ask them for their final comments. We 

will give full consideration to all proposals filed in a timely manner.2

Interested air 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 air carriers when we deem it desirable; in such cases, of course, we will 

give all applicants the same opportunity. We also retain the discretion to reject outright all 

unreasonable or unrealistic proposals and re-solicit a new round of proposals. However, 

negotiation or rejection are only an occasional exception to the rule.

The Department is providing interested air 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, they might want to include 

proposed schedules as well as supporting data for their subsidy requests, such as projected block 

hours, revenues and expenses. The Department strongly encourages clear, well-documented 

proposals that will facilitate their evaluation by the affected community and the Department.3

The Department expects proposals that are consistent with what the community previously

received, namely 14 nonstop round trips per week with 30-seat aircraft, or 12 nonstop round trips 

per week with 50-seat or larger aircraft, with service to Salt Lake City, or another suitable hub 

airport that provides numerous connecting opportunities to the national air transportation system. 

The Department encourages proposals that meet these guidelines in an efficient manner. Carriers 

are also welcome to propose more than one service option, if they choose. They also need not 

limit themselves to these requirements if they envision other, potentially more attractive service 

possibilities -- different hubs or length of contract, 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.

 2 Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide EAS 

without subsidy and we determine that basic EAS, as required by 49 U.S.C. § 41732, can be reliably provided 

without such compensation, we typically will not proceed with the carrier-selection case. Instead, we simply rely on 

that carrier’s subsidy-free service as proposed.

3 In selecting a carrier to provide subsidized EAS for an eligible place not in Alaska, 49 U.S.C. § 41733(c)(1) directs 

us to consider five 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; and (e) whether the carrier has included a plan in its 

proposal to market its service to the community. In addition, the Consolidated Appropriations Act, 2014, Public 

Law No. 113-76, and continued in the Continuing Appropriations Resolution, 2015, Public Law No. 113-164, 

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 Essential Air Service 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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Service and Traffic History

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 in Appendix B. The Department expects service 

levels that are consistent with what the community previously received that offers access to the 

national air transportation system. 

Filing Requirements

Air carrier proposals should be submitted to the Department with all materials merged into a 

single document. The document will be published on www.regulations.gov and 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.4 Consequently, all air carriers receiving 

Federal subsidy for EAS 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. Because the Department is prohibited from paying 

subsidy to air carriers that do not submit these documents, all air carriers that plan to submit 

proposals involving subsidy should be aware that the selected air carrier will be required to 

complete the required certifications. Interested air carriers requiring more detailed information 

regarding these requirements should contact the Office of Aviation Analysis at (202) 366-5903.5

Community and State Comments

The community and State are welcome to submit comments at any time. We encourage 

prospective applicants to contact the community before they submit their proposals so that they 

can tailor them to the community’s needs, as they will not be able to amend them after the due 

date. 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 December 18, 2014, the due date for proposals.

This Order is issued under authority delegated in 49 CFR Part 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 -- 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 (non-procurement) and government-wide requirements for drug-free workplace (grants).

4 The certifications are available online under “Reports and Publications” at http://www.dot.gov/policy/aviationpolicy/small-community-rural-air-service/essential-air-service.
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ACCORDINGLY,

1. The Department requests that air carriers interested in providing Essential Air Service at 

West Yellowstone, Montana, submit their proposals, with or without subsidy requests, no later 

than December 18, 2014. The proposals should be e-mailed to: EAS@dot.gov with the title 

“Proposal to Provide Essential Air Service at West Yellowstone, Montana6”.

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

3. The Department will serve copies of this Order on the Mayor of West Yellowstone, Montana, 

the Manager of Yellowstone Airport, and the service list for this docket.

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

Aviation Economic Regulations, 14 CFR Part 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.regulations.gov

 

5 Questions regarding filings in response to this Order may be directed to Michael Gormas at (202) 366-1853 or 

michael.gormas@dot.gov.
Appendix A

AREA MAP

Maps generated by the Great Circle Mapper - copyright © Karl L. Swartz
Appendix B

Passenger Traffic at West Yellowstone

Source: Bureau of Transportation Statistics: Schedule T-100

CityMarketName_1 Airport_1 Year Month Enplaned Pax Deplaned Pax Grand Total

West Yellowstone, MT WYS 2012 6 1170 1014 2184

7 1366 1276 2642

8 1401 1440 2841

9 1092 1227 2319

2012 Total 5029 4957 9986

2013 6 1385 1101 2486

7 1383 1424 2807

8 1499 1476 2975

9 1170 1289 2459

2013 Total 5437 5290 10727

2014 6 1523 1307 2830

7 1627 1496 3123

8 1640 1612 3252

9 1126 1213 2339

2014 Total 5916 5628 11544
Appendix C

Example of General Terms and Conditions for Essential Air Service

The air 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 air 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 air 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 air 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 air carrier to provide service on these routes. The air 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 air 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 air 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 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.

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.