Order: 2010-5-14

Served: May 12, 2010

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 12th day of May, 2010

Essential Air Service at

LARAMIE, WYOMING

WORLAND, WYOMING

Docket DOT-OST-1997-2958

Docket DOT-OST-1997-2981

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

ORDER REQUESTING PROPOSALS 

Summary

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

essential air service (EAS) at Laramie and Worland, Wyoming, for the two-year period 

beginning October 1, 2010, with or without subsidy. Proposals are due by June 16, 2010. 

(See Appendix A for a map.)

Background

By Order 2008-7-3, the Department selected Great Lakes Aviation, Ltd., operating as both 

a United Airlines and Frontier Airlines code share partner (Great Lakes), to provide three 

nonstop round trips between Laramie and Denver each weekday and four over each 

weekend, for an annual subsidy rate of $1,215,603 and two one-stop (through Laramie or 

Cheyenne) round trips between Worland and Denver each weekday and weekend for an

annual subsidy rate of $1,735,814 for the two-year period from October 1, 2008, through

September 30, 2010.

Request for Proposals

As the end of the current contract approaches on September 30, we are here requesting 

proposals for a new two-year period beginning October 1. Interested carriers should 
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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 resolicit a new round of proposals. However, we 

anticipate that negotiation or rejection will remain only occasional exceptions to the rule.

We are here providing interested carriers with some basic information to assist them as 

they prepare their proposals, but we will not prescribe a precise format for their 

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

the annual amount of subsidy being requested. 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. We strongly encourage clear, well-documented proposals 

that will facilitate their evaluation by the community and the Department.1

Proposals should provide sufficient capacity to accommodate historical levels of traffic. 

With respect to Laramie, the Department expects proposals for three round trips on 

weekdays and weekends using aircraft with 15 or more seats, or two round trips on 

weekdays and weekends with larger aircraft. We would also consider proposals for four or 

five round trips a day with eight- or nine-seat aircraft. With respect to Worland, the 

Department expects proposals for two round trips on weekdays and weekends using 

aircraft with 15 or more seats, or three or four round trips a day with eight- or nine-seat 

aircraft. Proposals for both communities should consist of service to a hub airport, such as 

Denver or Salt Lake City. Should the communities agree to aircraft with fewer than 15 

passenger seats, in effect waiving their right to 15-seat or larger aircraft, we would 

consider the waiver to apply only to the two-year carrier-selection at hand, i.e. we would 

not assume that the communities waive their rights for all time. Of course, we will 

formally solicit the communities’ views on any service options we receive before making a 

long-term carrier selection decision. The communities 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 communities and that meet the operational needs of the airline interested in 

submitting a proposal.

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 

 

1

In selecting a carrier to provide subsidized essential air service, 49 U.S.C. 41733(c)(1) directs us to consider 

four factors: (1) scheduled service reliability; (2) contractual and marketing arrangements with a larger carrier 

to ensure service beyond the hub; (3) interline arrangements that the applicant has made with a larger carrier 

at the hub; and (4) community views, giving substantial weight to the views of the elected officials 

representing the users. 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 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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possibilities -- different hubs, for example -- with subsidy requirements that remain 

competitive.

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 Regulations.gov, 

each page should be formatted to be viewed online.

Historical Traffic

In order to assist prospective applicants in making traffic and revenue forecasts, we have 

included historical passenger data from 2005 through 2009 in Appendix B.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing 

lobbying activities, drug-free workplaces, and nondiscrimination.2 Consequently, all 

carriers 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 

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 expected to complete the required 

certifications. Interested carriers requiring more detailed information regarding these 

requirements as well as copies of the certifications should contact the Office of Aviation 

Analysis at (202) 366-5903.3

Community and State Comments

The communities and the state are welcome to submit comments at any time. We 

encourage prospective applicants to contact the community before they submit their 

proposals in order to tailor them to the community’s needs. As noted earlier, we will 

provide a copy of the proposals to the civic parties and ask them to submit their final 

comments shortly after June 16, the deadline for filing 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.

ACCORDINGLY,

 

2

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; 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).

3

The certifications are also available on the World Wide Web at http://ostpxweb.dot.gov/aviation/index.html.
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1. We request that carriers interested in providing essential air service at Laramie and 

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

June 16, 2010. The proposals should be e-mailed to EAS@dot.gov, with the title: 

“Proposal to Provide Essential Air Service at Laramie and/or Worland, Wyoming, Docket 

DOT-OST-1997-2958 and DOT-OST-1997-2981”;4

2. These dockets will remain open until further order of the Department; and

3. We will serve copies of this order on the Mayors of Laramie and Worland, the airport 

managers of the Laramie and Worland Airport, the governor of Wyoming, Great Lakes 

Aviation, Ltd., and the carriers listed in Appendix D.

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

Aviation Economic Regulations, 14 CFR Part 385.50, must file such 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

 

4 Questions regarding filings in response to this order may be directed to Michael Martin at (202) 366-6494, 

and proposals should be emailed to EAS@dot.gov, no later than June 16, 2010.
Appendix A

AREA MAP

 
Appendix B

Page 1 of 2

Historical Passenger Traffic at Laramie, Wyoming1

Enplanements at Laramie

2005 2006 2007 2008 2009

1Q 2,418 2,253 2,215 2,664 1,877

2Q 2,118 2,154 2,325 2,388 1,835

3Q 2,416 2,775 3,006 2,538 2,231

4Q 2,931 3,214 3,199 2,776 2,717

Totals 9,883 10,396 10,745 10,366 8,660

Deplanements at Laramie

2005 2006 2007 2008 2009

1Q 2,650 2,219 2,234 2,750 1,942

2Q 2,143 2,154 2,231 2,341 1,816

3Q 2,474 2,709 2,721 2,492 2,206

4Q 2,826 2,832 2,784 2,576 2,436

Totals 10,093 9,914 9,970 10,159 8,400

Total Origin and Destination 

Passengers

2005 2006 2007 2008 2009

1Q 5,068 4,472 4,449 5,414 3,819

2Q 4,261 4,308 4,556 4,729 3,651

3Q 4,890 5,484 5,727 5,030 4,437

4Q 5,757 6,046 5,983 5,352 5,153

Totals 19,976 20,310 20,715 20,525 17,060

 

1

Source: Department of Transportation, Bureau of Transportation Statistics, T-100 Market data.
Appendix B

Page 2 of 2

Historical Passenger Traffic at Worland, Wyoming1

Enplanements at Worland

2005 2006 2007 2008 2009

1Q 521 554 761 974 614

2Q 422 607 871 909 590

3Q 454 689 1,006 560 773

4Q 531 766 1,083 553 673

Totals 1,928 2,616 3,721 2,996 2,650

Deplanements at Worland

2005 2006 2007 2008 2009

1Q 486 549 746 902 628

2Q 449 627 899 954 657

3Q 382 660 957 587 741

4Q 505 744 1,094 565 715

Totals 1,822 2,580 3,696 3,008 2,741

Total Origin and Destination 

Passengers

2005 2006 2007 2008 2009

1Q 1,007 1,103 1,507 1,876 1,242

2Q 871 1,234 1,770 1,863 1,247

3Q 836 1,349 1,963 1,147 1,514

4Q 1,036 1,510 2,177 1,118 1,388

Totals 3,750 5,196 7,417 6,004 5,391

 

1

Source: Department of Transportation, Bureau of Transportation Statistics, T-100 Market data.
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 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 carrier may cease to provide service to that specific 

location without regards 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 solicitation beyond 

September 30, 2010. The Department’s obligation for performance under this solicitation 

beyond September 30, 2010, is contingent upon the availability of appropriated 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 September 30, 2010, until funds 

are made available to the Department for performance. If funds are not made available for 

performance beyond September 30, 2010, 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 service provided 

under this order.
Appendix D

Scheduled Air Carriers, Contiguous US and Puerto Rico

Air Greco, d/b/a Wings Air, Aaron Goerlich Kenmore Air, Tim Brooks

Air Greco, d/b/a Wings Air, Charles Mintz Mesa Air Group, Jonathan Ornstein

Air Greco, d/b/a Wings Air, Robert Rupard Mesa Air Group, Michael Lotz

Air Sunshine, Mirmohammad Adili Mesa Air Group, Mike Holcomb

Air Wisconsin, Barbara Jones Mesaba, Max Shemesh

Alaska Airlines, Jeff Cole Mesaba, John Spanjers

Alaska Airlines, Sandy Sinick Midwest Airlines, Anthony Intravia

Allegiant Air, Robert Ashscroft Midwest Airlines, David Reeve

Alliance Air, Paul Berliner Midwest Airlines, Greg Aretakis

American Airlines, Carl Nelson MN Aviation, Jose Maldonado

American Eagle, Jeff Hartz Multi Aero, Darnea

Bemidji Aviation, Arlen Rinkenberger Multi Aero, Shane Storz

Bemidji Aviation, Cori Rude NYDC, Henok Araya

Cape Air, Andrew Bonney OST, Dennis DeVany, Kevin Adams

Cape Air, Dan Wolf OST, Michael Martin, Kevin Schlemmer

Cape Air, J. Flaherty OST, Brian Swanson, Renee Williams,

Caribbean Sun Airlines, John Rupert Pacific Wings, Frank Ford

Colgan Air, Mike Colgan Pacific Wings, Greg Kahlstorf

Colgan Air, Kevin Scott Pinnacle Airlines, Joe Williams

CommutAir, Andy Price Pinnacle Airlines, Phil Reed

CommutAir, Joel Raymond Public Charters, Jim Gallagher

Continental, Bruce Keiner Salmon Air, Dan Schroeder

Continental, Dan Weiss Salmon Air, JoAnn Wolters

Continental, Lorry Halloway Scenic, Mary Schneider

Delta Air Lines, Amy Martin Scenic, Mitzi Daines

Delta Air Lines, Jeff Morgan Seaborne Airlines, Wayne D’Amico

Delta Air Lines, Dan Shuman SeaPort Airlines, Rob McKinney

Delta Air Lines, Joe Esposito Shuttle America, Jerry Balsano

Delta Air Lines, Sascha Vanderbellen SkyWest, Eric Christensen

Delta Air Lines, Karen Zachary SkyWest, Michael Thompson

Executive Airlines, Kate Soled Sovereign Air, Bob Karns

Great Lakes Airlines, Chuck Howell Sovereign Air, Lois R. Barton

Great Lakes Airlines, Doug Voss Tradewind, Eric Zipkin

Great Lakes Airlines, Greg Stephens Trans States, Bill Mishk

Gulfstream, Dave Hackett Trans States, Gerry Wigmore

Gulfstream, Mickey Bowman United, Alicia Gabriel

Gulfstream, T. Cooper United, James Starnes

Homeland Security, Michael Duffy US Airways, Howard Kass

Homeland Security, Randy Webb US Airways, Jason Reisinger

Horizon Air, Dan Russo US Airways, Benjamin Slocum

Horizon Air, Jennifer Thompson Vintage Props and Jets, Nate Vallier

Horizon Air, Jeff Cole

ICEPR, Luis Irizarry

Island Air Charters, Linda House

Jet Air, Daniel Wolford