Order 2011-1-18

Served: January 26, 2011

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 21st day of January, 2011

ERRATUM

By this order, the Department is correcting the final operational and financial unit rates it will 

pay to Chautauqua Airlines, Inc. d/b/a Frontier Airlines (Frontier), a wholly owned subsidiary 

of Republic Airways Holdings, Inc., to provide subsidized essential air service (EAS) at the 

two above-captioned communities for the two-year period beginning when the carrier 

inaugurates full EAS. Frontier’s annual subsidy rates remain unchanged; however, the 

corrected operational and financial unit rates are summarized in Appendix A.

By Order 2011-1-16, January 18, 2011, the Department selected Frontier to provide 

subsidized EAS at Ironwood, Michigan/Ashland, Wisconsin (Ironwood), and 

Manistee/Ludington, Michigan (Manistee). Service will be provided with 37-seat Embraer 

135 aircraft for a two-year period beginning when the carrier inaugurates full EAS at both 

communities through the end of the 24th month thereafter, at a combined annual subsidy rate 

of $3,082,383. Order 2011-1-16 based the payout formula on Frontier providing 12 round 

trips a week between each community and Milwaukee, whereas the correct number of round 

trips is 13 a week. Appendix A corrects the operational and financial unit rates.

ACCORDINGLY,

1. The Department corrects the final rate of compensation for Chautauqua Airlines, Inc. d/b/a 

Frontier Airlines, for the provision of essential air service at Ironwood, Michigan/Ashland, 

Wisconsin and Manistee/Ludington, Michigan, as described in Appendix B of Order 2011-1-

16, for the two-year period, beginning when the carrier inaugurates full EAS at the two

communities, payable as follows: for each month during which essential air service is 

provided, the amount of compensation shall be subject to the weekly ceiling set forth in 

Essential Air Service at

IRONWOOD, MICHIGAN/ASHLAND, WISCONSIN

MANISTEE/LUDINGTON, MICHIGAN

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

Docket DOT-OST-1996-1266

Docket DOT-OST-1996-1711
- 2 -

Appendix A, and shall be determined by multiplying the subsidy-eligible arrivals and 

departures completed during the month by $1,044.09 for Ironwood/Ashland, and $1,275.24

for Manistee/Ludington;

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

3. Docket Operations will serve copies of this order on the parties listed in Appendix B.

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

Regulations, 14 CFR 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
Appendix A

Page 1 of 3

Chautauqua Airlines, Inc. d/b/a Frontier Airlines

Essential Air Service to Be Provided at Ironwood, Michigan/Ashland, Wisconsin

Effective Period Two years beginning when Frontier inaugurates full service 

through the end of the 24th month thereafter.

:

Scheduled Service: 13 one-stop round trips to Milwaukee a week

Intermediate stops and upline 

service: 

An intermediate stop at Rhinelander or Wausau/Stevens 

Point, Wisconsin is permitted.

No service to any other intermediate point is contemplated 

under the terms of the carrier’s proposal; accordingly, no 

such service may be provided on subsidized flights without 

prior Department approval.

Aircraft type: Embraer 135 (37-seats) or 145 (50-seats).

Timing of flights: Flights must be well-timed and well-spaced in order to 

ensure full compensation.

Annual compensation: $1,387,589

This rate assumes an annual completion factor of 98

percent. A compensation ceiling is to be applied per 

calendar week such that service above that ceiling in one 

week cannot make up for service shortfalls in another 

week.

Subsidy Rate per Flight: $1,044.091

Weekly Compensation Ceiling: $27,146.342

 1 $1,387,589 divided by 1,329 annual departures: 26 flights x 52 weeks x .98 (completion factor) + 1 day at 4 

departures = 1,329.

2 26 flights per week multiplied by $1,044.09 per flight.
Appendix A

Page 2 of 3

Chautauqua Airlines, Inc. d/b/a Frontier Airlines

Essential Air Service to Be Provided at Manistee/Ludington, Michigan

Effective Period Two years beginning when Frontier inaugurates full service 

through the end of the 24th month thereafter.

:

Scheduled Service: 13 nonstop round trips to Milwaukee a week

Intermediate stops and upline 

service: 

No service to any intermediate point is contemplated under 

the terms of the carrier’s proposal; accordingly, no such 

service may be provided on subsidized flights without prior 

Department approval.

Aircraft type: Embraer 135 (37-seats) or 145 (50-seats).

Timing of flights: Flights must be well-timed and well-spaced in order to 

ensure full compensation.

Annual compensation: $1,694,794

This rate assumes an annual completion factor of 98

percent. A compensation ceiling is to be applied per 

calendar week such that service above that ceiling in one 

week cannot make up for service shortfalls in another 

week.

Subsidy Rate per Flight: $1,275.243

Weekly Compensation Ceiling: 33,156.244

 3 $1,694,794 divided by 1,329 annual departures: 26 flights x 52 weeks x .98 (completion factor) + 1 day at 4 

departures =1,329.

4 26 flights per week multiplied by $1,275.24 per flight.
Appendix A

Page 3 of 3

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 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 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 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 order beyond March 3, 2011. 

The Department’s obligation for performance under this order beyond March 3, 2011, 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 March 3, 2011, until funds are made available to the 

Department for performance. If funds are not made available for performance beyond 

March 3, 2011, 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.
Appendix B

SERVICE LIST

Mr. Duane DuRay

Manager

Gogebic - Iron County Airport

E5560 Airport Road

Ironwood, Michigan 49938

Mr. Gerald E. Edwards

Assistant Administrator, Aviation Services 

Division

Bureau of Aeronautics & Freight Services

Michigan Department of Transportation

Aeronautics Building

2700 Port Lansing Road

Lansing, Michigan 48906

Mr. Barry Lind

Manager

Manistee County Blacker Airport

2323 Airport Road

Manistee, Michigan 49960