Order 2012-6-2

Served: June 5, 2012

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 5th day of June, 2012

Essential Air Service at

KEARNEY, NEBRASKA

NORTH PLATTE, NEBRASKA

SCOTTSBLUFF, NEBRASKA

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

DOCKET DOT-OST-1996-1715

DOCKET DOT-OST-1999-5173

DOCKET DOT-OST-2003-14535

ORDER REQUESTING PROPOSALS

Summary

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

Essential Air Service (EAS) at Kearney, North Platte, and Scottsbluff, Nebraska, with or 

without subsidy. Proposals are due by July 10, 2012. (See Appendix A for a map.)

Background

By Order 2010-9-10, September 8, 2010, the Department re-selected Great Lakes Aviation, 

Ltd., operating as both a United Airlines and Frontier Airlines code-share partner (Great 

Lakes), to provide EAS at the above captioned communities from November 1, 2010, through 

October 31, 2012, for a combined annual subsidy of $5,344,690.

Request for Proposals

As the end of the current contracts approach, in order to provide sufficient time to complete the 

air carrier-selection process before the current contracts expire, we are requesting proposals 

from air carriers interested in providing service at any or all of these three communities, with or 

without subsidy, for a new contract period beginning November 1, 2012. Air carriers should 

file their proposals no later than July 10, 2012. After that date, our staff will docket proposals, 

thereby making them public, and shortly afterwards will provide a summary of the proposals to 

the communities and ask them for their final comments. We will give full consideration to all 

proposals filed in a timely manner. 

Interested air carriers should prepare their proposals with every expectation that their initial 

proposals will also be their final and only proposals. We retain the discretion to negotiate 
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proposals with carriers when we deem it desirable. We also retain the discretion to reject 

outright all unreasonable or unrealistic proposals and solicit a new round of proposals.

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 www.Regulations.gov, each

page should be formatted to be viewed online.

We are here providing interested carriers with some basic information to serve as guidance 

when they prepare their proposals, but we will not prescribe an exact format. 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, 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 

affected community and the Department.1

Carriers are also welcome to propose more than one option, if they choose; they need not limit 

themselves to those requirements if they envision other, potentially more attractive service 

possibilities -- different hubs, frequency, or length of contract, for example -- with subsidy 

requirements that remain competitive. The community 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 community and meets the operational needs of the airlines.

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

order to assist carriers in developing traffic and revenue projections for their proposals, we 

have provided a summary of historical passengers in Appendix B. During the year ended 

December 31, 2011, Kearney averaged 35 enplanements per day, North Platte, 29, and 

Scottsbluff, 31. We note also that passenger levels have generally been increasing the last 

several years. We expect service levels that are comparable with what the community currently 

receives, with service to Denver or any large- or medium-hub that offers access to the national 

air transportation system utilizing twin engine aircraft. Specifically, for 30-seat or larger 

aircraft, we expect proposals for two round trips a day (12 a week). For proposals with 15-seat 

or larger aircraft, the Department expects proposals for three round trips each weekday and 

weekend (18 a week). For proposals with 8/9-seat aircraft, we would expect proposals for four

or five round trips a day (24-30 a week).2 Should the community agree to single-engine 

aircraft, in effect waiving their right to twin-engine 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 

 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) service reliability; (2) contractual and marketing arrangements with a larger carrier at the hub; 

(3) interline arrangements with a larger carrier at the hub; and (4) community views. 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 EAS 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.

2 Previously, most EAS communities were entitled to service with 15-seat or larger aircraft. However, in the 

Department’s FY 2012 appropriation (Consolidated and Further Continuing Appropriations Act P.L. 112-55, 

November 18, 2011), Congress repealed the 15-seat guarantee, although communities are still entitled to service 

with twin-engine aircraft. 
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community would waive its rights for all time. As always, we will formally solicit the

communities’ views on any service options we receive before making a long-term, carrierselection decision.

Given that we are requesting service to a total of three communities, carriers should be very

clear as to whether their proposals are for individual cities or part of a larger, inseparable 

package. 

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

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

receiving Federal subsidy to support 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. All carriers that plan 

to submit proposals involving subsidy should submit the required certifications along with their 

proposals. 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. The Department is prohibited from paying subsidy to carriers that 

do not submit these documents.4

Community and State Comments

Civic officials are welcome to submit comments on the proposals at any time. As noted earlier, 

we will provide a summary of the proposals to the civic parties and ask them to submit their 

final comments shortly after July 10, 2012 the due date for 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,

1. We request that carriers interested in providing Essential Air Service at Kearney, North 

Platte, and Scottsbluff, Nebraska, submit their proposals, with or without subsidy requests, no 

later than July 10, 2012. The proposals should be emailed to: EAS@dot.gov with the title 

“Proposal to Provide Essential Air Service at (specify the EAS community and corresponding 

docket number from the first page);5

2. These dockets 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 (nonprocurement) and government-wide requirements for drug-free workplace (grants).

4 The certifications are also available on the web at http://ostpxweb.dot.gov/aviation/index.html. 5 Questions regarding filings in response to this Order should be directed to Michael Martin at 202-366-6494, or 

via email at michael.f.martin@dot.gov.
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3. The Department will serve a copy of this Order on the Mayors and Airport Managers of the 

above mentioned communities, Great Lakes Aviation, Ltd., and the service list for this Docket.

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

Aviation Economic 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 online at

www.regulations.gov
Appendix A

Area Map

Maps generated by the Great Circle Mapper - copyright © Karl L. Swartz.
Appendix B

Page 1 of 3

Historical Origin-Destination Plane Traffic1

Kearney, Nebraska

Quarter Year Deplanements Enplanements Total Traffic

Enplanements 

per Day

1 2009 2,415 2,414 4,829 31

2 2009 2,385 2,526 4,911 31

3 2009 2,385 2,321 4,706 30

4 2009 2,391 2,483 4,874 31

Annual 

Totals 9,576 9,744 19,320 31

1 2010 2,162 2,210 4,372 28

2 2010 2,327 2,384 4,711 30

3 2010 2,524 2,438 4,962 31

4 2010 2,361 2,403 4,764 30

Annual 

Totals 9,374 9,435 18,809 30

1 2011 2,439 2,423 4,862 32

2 2011 2,699 2,709 5,408 35

3 2011 2,956 2,931 5,887 37

4 2011 2,838 2,925 5,763 36

Annual 

Totals 10,932 10,988 21,920 35

 1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100.
Appendix B

Page 2 of 3

Historical Origin-Destination Plane Traffic1

North Platte, Nebraska

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per day

1 2009 1,840 1,776 3,616 23

2 2009 1,963 1,983 3,946 25

3 2009 2,243 2,236 4,479 28

4 2009 1,874 1,845 3,719 24

Annual 

Totals 7,920 7,840 15,760 25

1 2010 1,691 1,821 3,512 23

2 2010 2,098 2,150 4,248 27

3 2010 2,165 2,373 4,538 29

4 2010 1,919 2,022 3,941 25

Annual 

Totals 7,873 8,366 16,239 26

1 2011 1,991 2,174 4,165 27

2 2011 2,262 2,255 4,517 29

3 2011 2,459 2,541 5,000 32

4 2011 2,088 2,178 4,266 27

Annual 

Totals 8,800 9,148 17,948 29

 1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100.
Appendix B

Page 3 of 3

Historical Origin-Destination Plane Traffic1

Scottsbluff, Nebraska

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per day

1 2009 2,140 2,144 4,284 28

2 2009 2,255 2,211 4,466 29

3 2009 2,210 2,288 4,498 28

4 2009 2,367 2,454 4,821 31

Annual 

Totals 8,972 9,097 18,069 29

1 2010 2,518 2,251 4,769 31

2 2010 2,647 2,410 5,057 32

3 2010 2,827 2,764 5,591 35

4 2010 2,549 2,208 4,757 30

Annual 

Totals 10,541 9,633 20,174 32

1 2011 2,181 2,114 4,295 28

2 2011 2,383 2,460 4,843 31

3 2011 2,675 2,773 5,448 34

4 2011 2,624 2,489 5,113 32

Annual 

Totals 9,863 9,836 19,699 31

 1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100.
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 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 solicitation beyond [DATE]. The 

Department’s obligation for performance under this solicitation beyond [DATE], 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 [DATE], until funds are made available to the Department for performance. If 

funds are not made available for performance beyond [DATE], 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.