Order: 2014-4-3

Served: April 2, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 2nd day of April, 2014

ORDER REQUESTING PROPOSALS

Summary

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

providing Essential Air Service (EAS) at Manley and Minto, Alaska, for a new contract

period, beginning September 1, 2014, with or without subsidy. (See Appendix A for a 

map). Carriers should file their proposals no later than May 6, 2014.

Background

By Order 2012-8-10, August 3, 2012, the Department re-selected Warbelows Air 

Ventures, Inc. (Warbelows), to provide subsidized EAS at Manley and Minto, Alaska,

through August 31, 2014. Under that Order, Warbelows provides three round trips per 

week to Fairbanks on a Fairbanks-Manley-Minto-Fairbanks routing. Service is provided 

on twin-engine, nine-passenger Piper Navajo aircraft, for a total combined annual subsidy 

rate of $91,068.

Request for Proposals

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

carriers interested in providing EAS at Manley and Minto, Alaska, with or without 

subsidy, for a new contract period beginning September 1, 2014. Carriers should file 

their proposals no later than May 6, 2014. Staff will then docket the proposals, thereby 

making them public, and direct each carrier to serve a copy of its proposal on the civic 

parties and other applicants. Shortly afterwards, we will provide a summary of the 

proposals to the communities and the State and ask them to submit their final comments. 

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

 1 Carriers should not expect the Department to accept late fillings. In cases where a carrier proposes to 

provide EAS without subsidy and we determine that service can be reliably provided without such 

compensation, we typically do not proceed with the carrier-selection case. Instead, we simply rely on that 

carrier’s subsidy-free service as proposed.

Essential Air Service at

MANLEY, ALASKA

MINTO, ALASKA

Under 49 U.S.C. §41731 et seq.

DOCKET DOT-OST-2004-17563
Interested carriers should 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 re-solicit a new 

round of proposals. However, negotiation and rejection are only occasional exceptions to 

the rule.

We are here providing interested 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 annual 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, applicants are urged 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 evaluation by the affected 

communities and the Department.2

With specific respect to Manley and Minto, we expect proposals consisting of service

consistent with what the communities currently receive, namely three nonstop or one-stop 

round trips per week to Fairbanks with small aircraft. We encourage proposals that meet 

these 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 possibilities (e.g., 

a different length of contract) with subsidy requirements that remain competitive. We 

encourage carriers to work with the communities as they prepare their proposals in order 

to craft them to best meet the communities’ needs. As always, we will fully consider the 

communities’ views before making a long-term carrier decision.

Filing Procedures

Carrier proposals should be submitted to the Department with all materials compiled into 

a single document. In addition, because the document will be published on 

http://www.regulations.gov/, each page should be formatted to be viewed online and for 

easy printing.

 2 In selecting a carrier to provide subsidized EAS for an eligible place in Alaska, 49 U.S.C. § 41733(c)(1) 

directs us to consider six 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, and; (f) the experience of 

the applicant in providing, in Alaska, scheduled air service or significant non-scheduled service. In 

addition, the Consolidated Appropriations Act, 2014, Public Law No. 113-76, 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.
Service and Traffic History

In order to assist carriers in making their traffic and revenue projections, we have 

included historical traffic data in Appendix B. For the year ended February 28, 2014, the 

most recent annual period for which data are available, Manley generated approximately 

1.6 origin and destination passengers per week as well as approximately 631 weekly 

pounds of freight and mail. For the same period, Minto averaged 4 passengers per week 

and 376 pounds of freight and mail.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing

lobbying activities, drug-free workplaces, and nondiscrimination.3 Consequently, all 

carriers receiving Federal subsidy for EAS 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 required to complete the required certifications. Interested 

carriers requiring more detailed information regarding these requirements should contact 

the Office of Aviation Analysis at (202) 366-5903.4

Community and State Comments

The communities and State are welcome to submit comments at any time. 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 May 6, 2014, the due date for proposals.

This Order is issued under authority delegated in 49 CFR 1.25a(b) and re-delegated to the 

Director, Office of Aviation Analysis.

ACCORDINGLY,

1. We request that carriers interested in providing EAS at Manley and Minto, Alaska, 

submit their proposals, with or without subsidy requests, no later than May 6, 2014. The 

proposals should be e-mailed to: EAS@dot.gov with the title “Proposal to Provide 

Essential Air Service at Manley and Minto, Alaska, Docket DOT-OST-2004-17563”;5

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

 3 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 governmentwide requirements for drug-free workplace (grants).

4 The certifications are also available on the web at http://www.dot.gov/policy/aviation-policy/smallcommunity-rural-air-service/essential-air-service. 5 Questions regarding filings in response to this Order may be directed to A.J. Muldoon at (202) 366-1058 

or albert.muldoon@dot.gov. 
3. We will serve copies of this Order on the communities of Manley and Minto, Alaska, 

the Alaska Department of Transportation 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 385.31(a), must file such petitions within 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

(SEAL)

An electronic version of this document is available

at http://www.regualtions.gov
APPENDIX A

SERVICE AREA MAP
1

APPENDIX B

Historical Traffic at Manley, Alaska6

Year Month Pax Freight (lbs.) Mail (lbs.) Year Month Pax Freight (lbs.) Mail (lbs.) Year Month Pax Freight (lbs.) Mail (lbs.)

2011 3 2 99 1,529 2011 3 0 54 2,818 2011 3 2 153 4,347

2011 4 0 0 1,029 2011 4 2 31 2,655 2011 4 2 31 3,684

2011 5 2 20 195 2011 5 1 94 2,534 2011 5 3 114 2,729

2011 6 0 0 351 2011 6 1 47 1,902 2011 6 1 47 2,253

2011 7 1 10 373 2011 7 1 120 2,844 2011 7 2 130 3,217

2011 8 3 0 1,018 2011 8 3 114 3,041 2011 8 6 114 4,059

2011 9 2 0 236 2011 9 3 303 6,560 2011 9 5 303 6,796

2011 10 4 97 243 2011 10 1 103 5,428 2011 10 5 200 5,671

2011 11 3 9 211 2011 11 1 206 2,912 2011 11 4 215 3,123

2011 12 1 0 438 2011 12 4 234 2,721 2011 12 5 234 3,159

2012 1 2 115 232 2012 1 0 138 2,676 2012 1 2 253 2,908

2012 2 3 5 363 2012 2 4 169 2,403 2012 2 7 174 2,766

YE 2/29/2012 23 355 6,218 YE 2/29/2012 21 1,613 38,494 YE 2/29/2012 44 1,968 44,712

2012 3 2 1 368 2012 3 3 111 2,562 2012 3 5 112 2,930

2012 4 2 2 252 2012 4 2 124 1,503 2012 4 4 126 1,755

2012 5 2 1 314 2012 5 1 28 2,230 2012 5 3 29 2,544

2012 6 5 1 161 2012 6 3 164 2,066 2012 6 8 165 2,227

2012 7 1 30 261 2012 7 1 666 2,145 2012 7 2 696 2,406

2012 8 3 0 419 2012 8 4 163 2,184 2012 8 7 163 2,603

2012 9 2 0 257 2012 9 4 503 2,210 2012 9 6 503 2,467

2012 10 6 4 368 2012 10 3 448 2,605 2012 10 9 452 2,973

2012 11 2 0 373 2012 11 1 198 2,346 2012 11 3 198 2,719

2012 12 2 0 453 2012 12 0 111 3,555 2012 12 2 111 4,008

2013 1 2 0 993 2013 1 5 167 2,372 2013 1 7 167 3,365

2013 2 2 2 558 2013 2 0 206 2,029 2013 2 2 208 2,587

YE 2/28/2013 31 41 4,777 YE 2/28/2013 27 2,889 27,807 YE 2/28/2013 58 2,930 32,584

2013 3 2 2 545 2013 3 8 117 2,101 2013 3 10 119 2,646

2013 4 4 0 261 2013 4 1 196 1,979 2013 4 5 196 2,240

2013 5 2 67 283 2013 5 4 155 2,037 2013 5 6 222 2,320

2013 6 6 1 316 2013 6 4 325 1,951 2013 6 10 326 2,267

2013 7 6 38 826 2013 7 7 195 1,992 2013 7 13 233 2,818

2013 8 6 0 222 2013 8 2 771 2,190 2013 8 8 771 2,412

2013 9 4 5 317 2013 9 4 241 2,172 2013 9 8 246 2,489

2013 10 3 26 338 2013 10 4 265 2,184 2013 10 7 291 2,522

2013 11 3 3 202 2013 11 1 324 1,459 2013 11 4 327 1,661

2013 12 3 0 452 2013 12 2 552 2,969 2013 12 5 552 3,421

2014 1 1 2 404 2014 1 2 243 1,859 2014 1 3 245 2,263

2014 2 2 12 253 2014 2 4 279 1,696 2014 2 6 291 1,949

YE 2/28/2014 42 156 4,419 YE 2/28/2014 43 3,663 24,589 YE 2/28/2014 85 3,819 29,008

Origin Manley Destination Manley O&D Manley

 6 Source: Bureau of Transportation Statistics; Form 41, Schedule T-100 Market Report. 
2

APPENDIX B

Historical Traffic at Minto, Alaska7

Year Month Pax Freight (lbs.) Mail (lbs.) Year Month Pax Freight (lbs.) Mail (lbs.) Year Month Pax Freight (lbs.) Mail (lbs.)

2011 3 10 1 235 2011 3 8 137 1,128 2011 3 18 138 1,363

2011 4 10 3 273 2011 4 7 133 1,443 2011 4 17 136 1,716

2011 5 11 3 714 2011 5 5 233 1,004 2011 5 16 236 1,718

2011 6 8 3 186 2011 6 5 153 1,555 2011 6 13 156 1,741

2011 7 6 9 225 2011 7 3 46 1,263 2011 7 9 55 1,488

2011 8 6 2 339 2011 8 5 34 1,774 2011 8 11 36 2,113

2011 9 1 2 209 2011 9 6 152 1,602 2011 9 7 154 1,811

2011 10 7 3 239 2011 10 8 696 1,536 2011 10 15 699 1,775

2011 11 4 1 174 2011 11 3 111 1,022 2011 11 7 112 1,196

2011 12 7 18 270 2011 12 3 311 1,358 2011 12 10 329 1,628

2012 1 4 1 213 2012 1 3 48 1,332 2012 1 7 49 1,545

2012 2 6 7 207 2012 2 9 168 1,551 2012 2 15 175 1,758

YE 2/29/2012 80 53 3,284 YE 2/29/2012 65 2,222 16,568 YE 2/29/2012 145 2,275 19,852

2012 3 7 154 185 2012 3 6 355 1,389 2012 3 13 509 1,574

2012 4 3 2 171 2012 4 2 323 891 2012 4 5 325 1,062

2012 5 6 3 158 2012 5 2 234 1,021 2012 5 8 237 1,179

2012 6 4 6 248 2012 6 2 12 1,124 2012 6 6 18 1,372

2012 7 3 1 111 2012 7 5 19 633 2012 7 8 20 744

2012 8 10 17 902 2012 8 5 13 1,388 2012 8 15 30 2,290

2012 9 6 1 778 2012 9 5 53 1,143 2012 9 11 54 1,921

2012 10 4 2 244 2012 10 2 318 1,367 2012 10 6 320 1,611

2012 11 8 2 285 2012 11 4 49 1,086 2012 11 12 51 1,371

2012 12 8 1 178 2012 12 2 217 1,542 2012 12 10 218 1,720

2013 1 9 22 112 2013 1 7 96 2,341 2013 1 16 118 2,453

2013 2 13 2 187 2013 2 2 101 1,196 2013 2 15 103 1,383

YE 2/28/2013 81 213 3,559 YE 2/28/2013 44 1,790 15,121 YE 2/28/2013 125 2,003 18,680

2013 3 13 4 144 2013 3 5 106 1,275 2013 3 18 110 1,419

2013 4 10 192 168 2013 4 10 111 1,149 2013 4 20 303 1,317

2013 5 11 2 189 2013 5 9 191 1,340 2013 5 20 193 1,529

2013 6 7 7 89 2013 6 8 992 705 2013 6 15 999 794

2013 7 10 2 236 2013 7 2 267 947 2013 7 12 269 1,183

2013 8 8 0 121 2013 8 8 292 900 2013 8 16 292 1,021

2013 9 7 2 192 2013 9 12 101 1,417 2013 9 19 103 1,609

2013 10 9 1 161 2013 10 7 175 1,016 2013 10 16 176 1,177

2013 11 12 5 106 2013 11 10 891 1,003 2013 11 22 896 1,109

2013 12 8 3 345 2013 12 5 376 1,468 2013 12 13 379 1,813

2014 1 6 2 201 2014 1 6 135 946 2014 1 12 137 1,147

2014 2 20 5 295 2014 2 15 124 1,144 2014 2 35 129 1,439

YE 2/28/2014 121 225 2,247 YE 2/28/2014 97 3,761 13,310 YE 2/28/2014 218 3,986 15,557

Origin Minto Destination Minto O&D Minto

 7 Source: Bureau of Transportation Statistics; Form 41, Schedule T-100 Market Report. 
1

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 complete, 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. 

Funds may not be available for performance under this Order 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. 

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. 

All claims 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 31st; August claims must be submitted by November 

30th, and so on.