Order 2010-5-19

Served: May 17, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 17th of May, 2010

Essential Air Service at

CRESCENT CITY,

CALIFORNIA

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

DOCKET OST-1997-2649

ORDER RESELECTING CARRIERS

Summary

By this order, the Department is reselecting SkyWest Airlines, Inc., d/b/a United Express

(SkyWest), to provide essential air service (EAS) at Crescent City, California, at an annual 

subsidy rate of $1,781,888.

1 The selection extends from August 1, 2010, through July 31, 2012.

Background

Order 2008-4-23, April 15, 2008, reselected SkyWest to provide 12 nonstop round trips per week 

to San Francisco and 6 one-stop round trips a week to Sacramento with 30-seat Embraer Brasilia

aircraft, for the two-year period ending July 31, 2010, at the annual subsidy rate of $1,136,896. 

In anticipation of the end of the current contract on July 31, by Order 2010-3-22 we requested 

proposals for replacement service, with proposals due April 19. We received a timely filed 

proposal from only one carrier, SkyWest, and requested comments from the community. On 

May 4 we received comments from the community, and the issue is ripe for decision.

Carrier Proposal

SkyWest was the only carrier to submit a proposal, and its proposal included only one option. 

The carrier proposes to eliminate its six one-stop round trips per week between Crescent City and 

Sacramento, but to increase its service between Crescent City and San Francisco from twelve 

 

1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds.
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nonstop round trips per week to fourteen. All of the service would be with 30-seat Embraer 

Brasilia aircraft, and SkyWest requests $1,781,888 for this service.

Community Comments

We have received community comments from the Mayor of Crescent City and from the Airport 

Manager. The mayor noted that SkyWest’s air service was of critical importance to the 

community and was a driver for its economic development. She expressed appreciation for the 

cooperative relationship between the community and SkyWest, the community’s long-term air 

service provider. The Airport Manager noted that SkyWest’s bid would eliminate the service to 

Sacramento. “Although we regret losing service to the state capital, it appears that the greatest 

average passenger traffic is consistently into San Francisco.”

Decision

SkyWest is the only carrier to submit a proposal, it submitted only one option, and we have 

decided to select it. SkyWest’s proposal will provide excellent access to the national air 

transportation system with its code-share arrangements with United Airlines at the San Francisco 

hub. Further, while the community regrets the loss of its service to Sacramento, they understand

that its historical service to Sacramento, which we will no longer subsidize, generated only four 

passengers per flight compared to 15 per flight for the community’s service to San Francisco. 

SkyWest’s proposal reflects recent historical traffic, augmented by the increase in service it has 

proposed to San Francisco – from 12 to 14 round trips per week. Also, SkyWest’s unit costs are 

still low compared to other carriers operating comparable equipment. In brief, we find 

SkyWest’s proposal to be reasonable for the service proposed.

Carrier Fitness

49 U.S.C. 41737(b) requires that DOT find an air carrier fit, willing, and able to provide reliable 

service before DOT may subsidize it to provide essential air service. SkyWest Airlines, Inc. is 

subject to the Department’s continuing fitness requirements, and no information has come to our 

attention that would cause us to question the carrier’s fitness at this time. DOT has contacted the 

Federal Aviation Administration, and it has raised no concerns that would negatively affect our 

fitness findings. DOT therefore concludes that the carriers remain fit to conduct the operations 

proposed here.

This order is issued under authority delegated in 49 CFR 1.56a(f).

ACCORDINGLY,

1. We reselect SkyWest Airlines, Inc., to provide essential air service at Crescent City, 

California, as described in Appendix C;
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2. We direct SkyWest Airlines, Inc., to retain all books, records, and other source and summary

documentation to support 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 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 

supported under the terms of this order;

3. We find that SkyWest Airlines, Inc., continues to be fit, willing and able to operate as a

certificated carrier and capable of providing reliable essential air service at Crescent City, 

California; 

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

5. We will serve copies of this order on the city of Crescent City, the airport manager, and 

SkyWest Airlines, Inc.

.

By:

Susan L. Kurland

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available on the World Wide Web at

http://www.regulations.gov
Appendix A

Nonstop, Great Circle Miles from Crescent City (CEC)

San Francisco, SFO 304

Eureka, ACV 56

Sacramento, SMF 255

Portland, PDX 276

Medford, MFR 81

This map is provided by Sabre® AirVisionTM Profit Essentials and is being used with express permission of the copyright holder, 

Sabre Airline Solutions®.
 Appendix B

 Annual Subsidy at Crescent City, California

Carrier SkyWest

Docket Number 1997-2649

Hub San Francisco

Weekly Round Trips 14

Passengers 22,200

Block Hours 1/ 2,188

Passenger Revenue $2,175,600

Total Directs $2,523,039

Total Indirects $1,245,997

Total Operating $3,769,036

Return @ 5% $188,452

Total Economic Cost $3,957,488

Annual Subsidy $1,781,888

1/ CE-SFO, 92 minutes/flight x 28 one-way flights 

 per week x .98 completion ÷ 60.
Appendix C

SkyWest Airlines, Inc., Essential Air Service to be Provided to 

Crescent City, California, Dockets OST-1997-2649

Effective Period: August 1, 2010, through July 31, 2012.

Scheduled Service: 14 nonstop round trips per week to San Francisco.

Aircraft: Embraer Brasilia, 30-seats

Rate per Eligible Flight: $1,249 1

Weekly Ceiling: $34,972 2

Note: 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 this rate, 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 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 carrier do not 

constitute a total or partial reduction or cessation of payment.

Subsidy contract 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 order beyond September 30, 2010. The Government’s 

obligation for performance under this order beyond September 30, 2010, is subject to 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 

Department will provide notice in writing to the carrier.

All claims for payment must be submitted within 60 days of the last day of service provided under this order.

 

1 Annual compensation of $1,781,888 divided by the estimated annual completed departures and arrivals: 

28 flights/week x 52 weeks x .98 completion = 1,427 total.

2 28 flights/week x $1,249.