Order: 2013

- 12

- 10

Served December 20, 2013

U N

I T E D S

T A T E S O F A

M E R I C A D E P A R T M E N T O F T R A N S P O R T A T

I O

N UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 20 th day of December , 20 1 3

Essential Air Service at

McCOOK, NEBRASKA

Under 49 U.S. C. § 47131 et seq. DOCKET DOT

- OST

- 1997

- 3005



### ORDER REQUESTING PROPOSALS

Summary

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

Essential Air Service (“EAS”) at McCook, Nebraska

, for a new two

- year period, with or without

subsidy support . Proposals are due January 31 , 201 4

. (See Appendix A for a map. )

B a c k g r o un d

By Order 2012

- 6

- 19 , issued on June 22, 2012

, the Department re

- selected Great Lakes Aviation,

Ltd. (“Great Lakes”) to provide subsidized EAS at McCoo k with 12 round trips to Denver using

19

- passenger Beechcraft B

- 1900D aircraft, for the period from June 1, 2012, through

May 31

, 2014 , at an annual subsidy rate of $ 1,976,338

. That Order, as well as the complete

public file for EAS at McCook

, may be acce ssed online through the Federal Docket

Management System at http://www.regulations.gov , by entering “DOT

- OST

- 1997

- 3005” in the

SEARCH for: Rules, Comments, Adjudications or Supporting Documents:” field.

Request for Proposals

As the end of the rate term approaches, we are here requesting proposals from air carriers

interested in providing EAS at Mc Cook

, with or without subsidy support , for the two

- year period

beginning June 1, 2014. Air carriers should file thei r proposals no later than January 31, 2014.

After that date, our staff will docket the proposals, thereby making them public. Additionally,

we request each air carrier serve a copy of its proposal on the civic parties at McCook and on the

other applicant s. Shortly afterwards, we will provide a s ummary of the proposals to the

community and ask them to submit any formal comments on this carrier

- selection case. We will

give full consideration to all proposals that are timely filed. 1

1 Air 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 service can be reliably provided without such compensation, we usually do not proceed with the carrier

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

- free service

as proposed.2

We are here 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. We expect proposals to adequately describe the service being proposed and the

annu al amount of subsidy being requested. The applicants can make their own judgments as

to the level of detail they wish to present; however, we recommend they include information

concerning proposed schedules and projected block hours. In addition, applica nts are
encouraged to provide financial data supporting their subsidy requests, including information

on their projected expenses and revenues. We strongly encourage clear, well

- documented

proposals that will facilitate their evalua tion by the affected co mmunity and the Department. 2

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

receives, namely 12 round trips per week to Denver or a nother suitable hub airport that

provides numerous connecting opportunities to the national air transportation system. We

encourage proposals that meet these guidelines in an efficient manner. Air c arriers are also

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

themselves to these requiremen ts if they envision other, potentially more attractive service

possibilities

-- different hubs or length of contract, for example

-- with subsidy requirements

that remain competitive.

Interested air carriers should prepare their propo s al with every expect ation that their initial

proposal will also be their final and only proposal. We retain the discretion to negotiate

proposals with air carriers when we deem it desirable; in such cases we will give all

applicants the same opportuni t y. We also retain the discretion to reject outright all

unreasonab l e or unrealistic proposals and solicit a new round of proposals. However, we

anticipate that negotiation or rejection will remain on l y occasional exceptions to the rule.

In order to assist air carriers in deve loping traffic and revenue projections for their proposals, we

have summarized historical passenge r levels at McCook in Appendix B. In the most recent 12

- month period for which data are available (October 1, 2012, through September 30, 2013)

McCook genera ted 3, 310 total origin and destination passengers , or an average of 6.2

enplanements per day

.

O t h e r Air Ca rr i e r R e qu i reme n t s The Department is responsible for implementing various Federal statutes governing l obbying

activities , drug

- free workplaces and no ndiscrimination

. 3 Consequent l y, all air carriers

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

direct s 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 and Further

Continuing Appropriations Act, 2012, Public Law No. 112

- 55, an d continued by the Full

- Year Continuing

Appropriations Act, 2013, Public Law No. 113

- 6, and the Continuing Appropriations Act, 2014, Public Law No.

113

- 46, provides that when selecting a carrier to provide EAS, the Department may consider the relative subs idy

requirements, thus codifying a factor that we have considered since the inception of the program.

3 The regulations applicable to these areas are: (1) 49 CFR Part 20

– New restrictions on lobbying; (2) 49 CFR

Part 21

– Nondiscrimination in federall y

- 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 programs3

receiving Federal subsidy to support EAS must certify that they are in compliance with

Department regulations regarding drug

- free workplaces and nondiscrimination, and those air

carr i ers whose subsidies exc eed $100,000 over the life of the rate term must also certify that

they are in compliance with the regu l ations 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 infor m ation regarding

the s e requirements, as well as copies of the certifications, should contact the Off i ce of

Aviation Ana l ysis at (202) 366

- 5903. The Department is prohibited from p aying subsidy to

air carriers that do not submit these document s

. 4

C o m m un i t y C o m m e n ts

Civic officials and the State are welco m e to submit comments at any time. We encourage prospective applicants to contact the communi t y before they submit their proposal s so that

they can tailor them to the communi t y’s needs, as they will not be ab l e to amend them after

the due date. As noted earlier, we will provide a copy of the propo s als to the civic parties and

ask them to submit their final comments short l y after Ja nuary 31 , 201 4 , the due da t e for air

carr i er 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.

ACCORDI N G L Y,

1. We request that air carriers interested in pro viding E ssential A ir S erv i ce at McCook,

Nebraska , submit their proposals, with or without subsidy requests, no later than

January 31

, 2014 . The proposals should be emailed to: EAS@dot.gov with the title

“Proposal to Pr ovide Essential Air Service at McCook, Nebraska ; ” 5

2

. Docket DOT

- OST

- 1997

- 3005 will remain open until furt her Order of the Department; and

and activities receiving or benefiting from Federal financial assi stance; 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 certifica tions are also available on the web at http://www.dot.gov/policy/aviation

- policy/small

- community

rural

- air

- service/essential

- air

- service

5 Questions regarding filings in response to this Order should be directed to Mr. Scott Faulk at scott.faulk@dot.gov

or (202) 366

- 9967.4

3

. The Department will serve cop i es of this Order on the civic offic i als of McCook, Nebraska

, the Manager of McCo ok Ben Nelson Regional Airport

, Great Lakes Aviation, Ltd.

, 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 Part 385.31(a), must file such petitions with in 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

An electronic version of this document is available

online at www.regulations.gov.Appendix A



### A R EA M AP OF McCOOK, NEBRASKA

M ap s g ene r a t e d b y t h e G r eat Ci r cle M appe r

- c op y r i g h t © Ka r l L. S w a r t z

.Appendix B



### Historical passenger Traffic at McCook, Nebraska 1

Year Quarter Outbound

Passengers Inbound

Passengers Total

2010 1 371 381 752

2010 2 487 534 1021

2010 3 483 484 967

2010 4 578 57 0 1148

Total 1919 1969 3888

2011 1 374 424 798

2011 2 492 500 992

2011 3 474 505 979

2011 4 441 487 928

Total 1781 1916 3697

2012 1 339 350 689

2012 2 381 428 809

2012 3 434 466 900

2012 4 469 443 912

Total 1623 1687 3310

2 013 1 412 399 811

2013 2 576 557 1133

2013 3 500 521 1021

Total 1488 1477 2965

1 Source: Bureau of Transportation Statistics; Schedule T

- 100.Appendix C

Example of General Terms and Conditions for Eassential Air Service

The air c a rr i e r un d er st a nds t h a t it m a y f o rfe it its c omp e ns a tion f or a n y f li g hts th a t it do e s not

op era te in c o n f o r m a n c e with the t er ms a nd stipul a tions of the ra te Order

, i n c luding the s er vi c e pl a ns outlin e d in the Order a nd a n y oth e r s i g ni f i c a nt e l e m e nts of the re qui re d s er vi ce , without

p r ior a p p r ov a l. The air c arr i e r und e r st a nds th a t a n a i r cr a f t t a k e

- o f f a nd l a nding a t its s c h e du l e d

d e stin a tion c onstitut e s a c ompl e t e d f li g ht; a bs e nt a n e x pl a n a tion suppo r ting subsi d y e li g i b ili t y f o r

a f l i g ht th a t h a s n ot b ee n c ompl e t e d, su c h a s cer t a in w ea th e r ca n ce ll a tions, o n l y c ompl e t e d f li g hts

a r e c onsid ere d e l i g ib le f or su b si d y

. I n a ddition, if the air carr i e r d o e s not s c h e dule or o p era t e its

f li g hts in f ull c on f o r m a n c e with the Order f o r a s i g ni f i ca nt p e r iod, it m a y j e op ar di z e its e nti r e

subsi d y c l a im f or t he p er iod in qu e stion. I f the air c a rr i e r c ont e mpl a t e s a n y su c h c h a ng e s b e y ond

the s c ope o f the Order du r ing the a ppli ca ble p e r iod of th e se ra t e s, it must f i r st noti f y the O ff i c e of

Avi a tion An a l y sis in w r iti n g a nd r ece ive w r itt e n a pp r o v a l f r om the D e p a r tm e nt to be e nsu re d o f

f ull c omp e ns a tion. S hould c i rc umst a n ce s w ar r a n t , the D e p ar tm e nt m a y l o c a te a nd s e l e c t a

re pl a ce m e nt air c arr i e r to p r ovide s er vi c e on th e se r out e s. The air c a rr i e r must c ompl e te a ll

f li g hts th a t ca n b e s a f e l y op era t e d; f l i g hts th a t ov e rf l y points f o r l ac k of t r a f f ic will not be

c omp e ns a t e d. I n d e t er m i ning wh e t h e r subsi d y p a y m e nt f o r a d e v i a ting f l i ght should be a djust e d

or dis a llow e d, t he D e p a r tm e nt will c onsid e r the e x t e nt to whi c h the g o a ls of the p r og ra m a r e m e t

a nd the e x t e nt of acce ss to the n a tion a l a ir t ra nspo r t a tion s y s t e m p r ovid e d to the c ommuni t y

.

I f the D e p ar tm e nt unil a t e ra l l y

, e ith e r p a r ti a l l y or c ompl e t e l y , t er min a t e s or re du ce s p a y m e nts f or

s e r vi c e or c h a ng e s s er vi c e r e qui re m e nts a t a sp ec i f ic lo c a tion p r ovid e d f or und e r this Order, th e n,

a t the e nd of the p e r iod f or whi c h t he D e p ar tm e nt d o e s m a ke p a y m e nts in the stipul a t e d a mounts

or a t the stipul a t e d s er vi c e l e v e ls, the air c a rr i e r m a y cea se to p r ovide s er v i c e t o th a t sp ec i f ic

lo c a tion without re g a r d to a n y r e qui re m e nt f or noti c e of su c h c e ss a tion. Those a djustm e nts in the

l e v e ls of subsi d y a nd/or s er vi c e th a t ar e mutu a l l y a g r ee d to in w r iting b y the D e p ar tm e nt a nd air

ca r r i e r do not c on s titute a tot a l or p ar ti a l re d u c tion or ce ss a tion of p a y m e nt.

S ubsi d y c ont r a c ts ar e su b j ec t to, a nd in c o r po r a te b y r ef e re n c e

, r e l e v a nt st a t ut e s a nd D e p ar tm e nt

r e g ul a tions, a s th e y m a y be a m e nd e d fr om time to tim e . How e v er

, a n y su c h st a tut e s, r e g ul a tions,

or a m e ndm e nts th ere to sh a ll not op era te to c ont r o v er t the f o r e g oi n g p ar a g r a ph.

Funds may not be available for performance under this Orde r 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 cla ims 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 31 st ; August claims must be subm itted by November

30 th , and so on.