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 5 th day of June , 20 12

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 Departme nt is requesting proposals from airlines interested in providing

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

without subsidy. Pr oposals 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 cont racts approach , in order to provide sufficient t ime to complete the

air c arrier

- selection process before the curre nt contracts expire, we are requesting proposals

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

without subsidy, for a new contract period beginning November 1, 2 012. Air c arriers 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 propo sals. We retain the discretion to negotiate- 2

-

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 s ubmitted 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 wi ll not prescribe an exact format. We expect

proposals to adequately describe the service being proposed and the annual amount o f 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 ho urs, 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

, f or 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 communit y and meets the operationa l needs of the airline s

.

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 summar y of historical pas sengers 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. W e expect service levels that are c o mparable with what the community currently

receive s , 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

airc raft, we expect proposals for two round trips a day (12 a week). F or proposals with 15

- seat

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

weekend (1 8 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 t o twin

- engine aircraft, we would consider the waiver to

apply only to the tw o

- 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, th us 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

se lected 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 Continui ng 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.- 3

-

community would waive its rights for all time. As always, we will formally solicit the

communit ies’ views on any service options we receive before making a long

- term, carrier

selection de cision.

Given that we are reque sting 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

Departm ent 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 c arriers 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, sh ould 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 ca rriers interested in providing Essential Air S ervice 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 commun ity and corresponding

docket number from the first page) ; 5

2. The s e docket s will remain open until further o rder of the Department; and

3 The regulations applicable to these areas are: (1) 49 CFR Part 20

– New rest rictions 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 pro grams

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 govern ment

- 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 resp onse to this Order should be directed to Michael Martin at 202

- 366

- 6494, or

via email at michael.f.martin@dot.gov

.- 4

-

3. The Department will serve a copy of this Order on the M ayor s and Airport M anager s of the

above mentioned communities

, Great Lakes Aviation, Ltd.

, and t he 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

.

Thi s 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 line 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 Traffic 1



### 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

- 1 00

.

### Appendix B

Page 2 of 3

Historical Origin

- Destination Plane Traffic 1



### 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

- 1 00

.

### Appendix B

Page 3 of 3

Historical Origin

- Destination Plane Traffic 1



### 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

- 1 00

.

### 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 co mpleted, 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 writt en 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 oper ated; 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 me t 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 locati on 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 pa ragraph.

Funds are not currently available for performance under this solicitation beyond [DATE] . The

Department’s obligation for performance under this soli citation beyond [DATE] , is contingent

upon the availability of appropriated funds from which paym ent 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

.