Order 20 1 2

- 9

- 15

Served: September 12 , 20 12



### UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 12 th day of September , 20 1 2

Essential Air Service at

JOPLIN, MISSOURI

Under 49 U.S.C. § 41731 et seq

. DOCKET DOT

- OST

- 2006

- 23932



### ORDER REQUESTING PROPOSALS

Summary By this O rder, the Department is requesting proposals , by October 17, 2012

, from carriers interested in providing E ssential Air S ervice (EAS) at Joplin, Missouri

, for a new contract period beginning March 1 , 20 1 3 , with or without subsidy. (See Appendix A for map.)

Background By Order 2010

- 9

- 9

, September 8 , 2010 , the Department selected Executive Airlines db a American Eagle Airlines (American Eagle)

, to provid e EAS at Joplin for the two

- year period ending February 28, 2013 . That O rder established an annual subsidy rate of $ 2,778,756 for

s ervice consist ing of 1 4 nonstop round trips per week to Dallas/Fort Worth International Airport (DFW)

. S ervice i s provided on ATR

- 72 (66 seats), Embraer 140 (44 seats), or Embraer 145 (50 seats) aircraft.

Request for Proposals As the end of the current rate term approaches, and in order to provide sufficient time to complete the carrier

- selection process before the current contract expires, we are here requesting proposals from carriers interested in providing service at Joplin , with or without subsidy support,

for a new contract period beginning March 1, 201 3 . Carriers should file their proposals no later

than October 17, 2012 . After that date, our staff will docket the proposals , thereby making them public, and direct each carrier to serve a copy of its proposal on the civic p arties and other applicants. Shortly afterwards, we will provide a summary of the proposals to community2

officials and ask them to submit their final comments. We will give full consideration to all proposals filed in a timely manner. 1

Interested carrie rs 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 proposals with carriers when we deem it desirable. We also retain the discretion to r eject outright all unreasonable or unrealistic proposals and solicit a new round of proposals.

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 precis e 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, the y 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 aff ected community and the Department. 2

In order to assist carriers in developing traffic and revenue projections for their proposals, we have summarized historical passengers in Appendix B. In 20 1 1 at Joplin

, American Eagle generated 53,210 O& D passengers, averaging 73 enplanements a day , based on seven

- day

- a

week service ; a significant increase from the 7,695 passengers and 12.3 average daily enplanements generated in 2010

.

W e request proposals for service consistent with what the community currently receives, namely, two daily round trips with 4 4

- seat or larger aircraft to DFW, Chicago

- O’Hare, Memphis, or another suitable hub airport with convenient connections to the national air transportation system. Carriers using smaller aircraft may propose more frequencies than the two daily roundtrips described above. 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 the mselves to those requirements if they envision other, potentially more attractive service possibilities

-- different hubs or length of contract , for example

-- with subsidy requirements that remain competitive. In that regard, given the passenger levels c ited above, the Department would expect that subsidy requirements, if any, would be substantially lower than

the current rate.

1 Carriers should not expect the Department to accept late filings. 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.

2 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 add ition, 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 p rovisions.3

Of course, as always, we will formally solicit the community’s views on any service options we receive before making a long

- term carrier selection decision. 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 o perational needs of the airline submitting th e proposal.

Filing Procedures Proposals should be submitted via email to EAS@dot.gov

. Carrier proposals should be submitted to the Department with all materials merged into a single document. In addition,

because the d ocument will be published on Regulations.gov, each page should be formatted so as to be easily viewed online.

Other Carrier Requirements The Department is responsible for implementing various Federal statutes governing lobbying activities, drug

- free workp laces and nondiscrimination. 3 Consequently, all 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 req uirements, 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 off icials 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 October 17, 2012 , the due date for carrier prop osals.

This order is issued under authority delegated in 49 CFR Part 1.56a(f) and re

- delegated to the Director, Office of Aviation Analysis.

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 Civ il 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 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.4

ACCORDINGLY, 1. We request that carriers interes ted in providing Essential Air S ervice at Joplin, Missouri

, submit their proposals, with or without subsidy requests, no later than October 17 , 20 1 2 . The proposals should be emailed to EAS@dot.gov with the title “Proposal to Provide Essential Air

Service at Joplin, Missouri

, Docket DOT

- OST

- 200 6

- 23932 ”

.

2. Docket DOT

- OST

- 200 6

- 23932 will remain open until further order of the Department; and

3. The Depart ment will serve a copy of this O rder on the mayor and airport manager of Joplin,

Missouri

, Executive Airlines dba American Eagle Airlines

, and the service list for this docket

.

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

Aviation Economic Regulations, 14 CFR Part 385.50, must file such petitions within ten (10) days after the d ate of service of this O rder.

This O rder 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.govAppendix A



## Area Map

This map is provided by Sabre ® AirVision TM Profit Essentials and is being used with express permission of the copyright holder, Sabre Airline Solutions®.Appendix B



### Historical O&D Traffic 1

EAS Carriers at Joplin, MO

Year Quarter Carrier Origin Destination Total O&D

2009 1 Great Lakes Airlines 852 914 1,766

2009 2 Great Lakes Airlines 931 929 1,860

2009 3 Great Lakes Airlines 1,031 1,063 2,094

2009 4 Great Lakes Airlines 959 998 1,957

2010 1 Great Lakes Airlines 817 898 1,715

2010 2 Great Lakes Airlines 958 900 1,858

2010 3 Great Lakes Airlines 1,013 1,115 2,128

2010 4 Great Lakes Airlines 981 1,013 1,994

2011 1 American Eagle 3,919 3,713 7,632

2011 2 American Eagle 8,134 7,962 16,096

2011 3 American Eagle 8,398 8,355 16,753

2011 4 American Eagle 6,445 6,284 12,729

2012 1 American Eagle 3,546 3,618 7,164

1 Source : Bureau of Transportation Statistics Form 41: T

- 100 Domestic Market.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 addi tion, 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 ma y 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 payme nt 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 b e 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 [DATE] . The Government's oblig ation for performance under this order 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 th is order beyond [DATE] , until funds are made available to the Department for performance. If funds are not made available for perfo rmance beyond [DATE] , the carrier will receive notice in writing by the Department.

All claims for payment must be submitte d within 60 days of the last day of service provided

under this order.