Order: 2010

- 5

- 14 Served: May

12, 2010



### UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued b y the Department of Transportation on the 12 th day

of May , 20 10

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 p roposals from carriers interested in providing essential air service (EAS) at Laramie and Worland , Wyoming, for the two

- ye ar p eriod beginning October 1, 2010 , with or without subsidy

. Proposals are due b y June 16 , 2010

. (See Appendix A for a map.) Backg round 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 o ver 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 $1,735,8 14 for the two

- ye ar 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
- ye ar period beginning October 1. Interested carriers should- 2

-

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 car riers 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 adequatel y 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 strongl y 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 L aramie, the Department expects proposals for three round trips on weekday s and weekends using aircraft with 15 or more seats, or two round trips on weekday s 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 resp ect to Worland, the Department expects proposals for two round trips on weekday s 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 serv ice 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 onl y to the two

- ye ar carrier

- selection at hand, i.e. we would not assume that the communities waive their rights for all time. Of cours e, 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 vie ws 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.- 3

-

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 additio n, 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 passe nger 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 Analy sis 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 cop y 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) an d re

- delegated to the Director, Office of Aviation Analy sis. AC CORDINGLY,

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

.- 4

-

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. Th ese doc ket s will remain open until further order of the Department; and 3. We will serve copies of this order on the Mayor s of Laramie and Worland , the airport manager s of the Laramie and Worland Airport, the governor of W yoming , 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) day s after the date of service of th is 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 ava ilable o n the World W ide Web at http://www.regulations.gov

4 Questions regarding filings in response to this orde r 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 MAPAppendix B Page 1 of 2 

### Historical Passenger Traffic at Laramie, Wyoming 1

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 4,47 2 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, Wyoming 1

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 44 9 627 899 954 657 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 Transpo rtation, 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 aircraf t 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 Analy sis in writing and receive written approval from the Department to be ensured of full compensation. Should circumstan ces 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 safel y operated; flights that overfl y points for lack of traffic will not be compensated. In det ermining whether subsidy pay ment 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 sy stem provided to the c ommunity

. If the Department unilaterally , either partially or completely , terminates or reduces pay ments 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 Departm ent does make pay ments 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 su

bsidy 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 pay ment. Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Departm ent 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 b eyo nd 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 pay

ment for services can be made. No legal liability on the part of the Government for any pay ment may arise for performanc e under this order beyond September 30 , 2010 , until funds are made available to the Department for performance. If funds are not made availab le for performance beyond September 30 , 2010, the carri er will receive notice in writing b y the Department. All claims for pay

ment must be submitted within 60 day s 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 Wiscon sin, 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 Wing s, 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 We iss 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