Order: 2013-11-24

Served: November 26, 2013

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 26th of November, 2013

ORDER REQUESTING PROPOSALS

Summary

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

Essential Air Service (EAS) at Chisholm/Hibbing, Minnesota, for a new contract period

beginning June 1, 2014, with or without subsidy. (See Appendix A for a map). Air carriers 

should file their proposals no later than January 7, 2014.

Background

By Order 2012-4-10 (April 6, 2012), the Department selected Delta Air Lines, Inc. (Delta) to 

provide 12 nonstop round trips per week from Range Regional Airport (Hibbing) to 

Minneapolis/St. Paul International Airport (Minneapolis) using 50-passenger Canadair 

Regional Jet aircraft, for a two-year period beginning when Great Lakes inaugurated service at 

Thief River Falls, Minnesota, which at the time was served by Delta in conjunction with 

Hibbing, through the end of the 24th month thereafter. Great Lakes inaugurated service at 

Thief River Falls on May 18, 2012, and Delta began its new obligation at Hibbing, thus 

making the expiration date of Delta’s contract to serve Hibbing May 31, 2014.1

The complete public file for EAS at Hibbing may be accessed online through the Federal 

Dockets Management System at: www.regulations.gov by entering “DOT-OST-2003-15796” 

in the “Search for Rules, Comments, Adjudications, or Supporting Documents” field.

 1 Delta Air Lines proposed to be responsible for the provision of this service itself rather than one of its codeshare partners. Delta indicated that one of its Delta Connection carriers would perform the service and SkyWest 

is the airline currently operating the service.

Essential Air Service at

CHISHOLM/HIBBING, MINNESOTA

Under 49 U.S.C. § 41731 et seq.

Docket DOT-OST-2003-15796
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Request for Proposals

As the end of the current contract approaches, the Department is requesting proposals from air 

carriers interested in providing EAS at Hibbing, with subsidy support if necessary, for a new 

contract period beginning June 1, 2014. Carriers should file their proposals no later than 

January 7, 2014. Staff will then docket the proposals, thereby making them public. Shortly 

afterwards, we will provide a summary of the proposals to the community and ask them to 

submit their final comments. We will give full consideration to all proposals that are timely 

filed.2

Interested air 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; in such cases, of course, we will 

give all applicants the same opportunity. 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. Air 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 

Regulations.gov, each page should be formatted to be viewed online. 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 encouraged 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.3

 2 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 basic EAS, as required by 49 U.S.C. § 41732, can be reliably 

provided without such compensation, we typically will not proceed with the carrier-selection case. Instead, we 

simply rely on that carrier’s subsidy-free service as proposed.

3 In selecting a carrier to provide subsidized EAS for an eligible place not in Alaska, 49 U.S.C. § 41733(c)(1) 

directs us to consider five 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. In addition, the Consolidated and Further 

Continuing Appropriations Act, 2012, Public Law No. 112-55, and continued by the Full-Year Continuing 

Appropriations Act, 2013, Public Law No. 113-6, and the Continuing Appropriations Act, 2014, Public Law No. 

113-46, 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.
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Proposals should provide sufficient capacity to accommodate historical levels of traffic. In 

order to assist air 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 

June 30, 2013, Hibbing averaged 37 enplanements per day. The Department expects 

proposals that are consistent with what the community currently receives, with service to a 

large- or medium-hub airport that provides numerous connecting opportunities to the national 

air transportation system. Specifically, air carriers should propose two round trips each 

weekday and weekend (12 a week) with 30-passenger or larger aircraft. For air carriers 

proposing service with 15-seat to 29-seat aircraft, we expect three round trips each weekday 

and weekend (18 a week). We would also consider proposals with 8/9-seat aircraft and 

additional frequencies. Air carriers are also welcome to propose more than one service 

option, if they choose. They also need not limit themselves to these requirements if they 

envision other, potentially more attractive service possibilities -- different hubs or length of 

contract, for example -- with subsidy requirements that remain competitive.

Community Comments

The community is welcome to submit comments at any time. We encourage prospective 

applicants to contact the community before they submit their proposals so that they can tailor 

them to the community’s needs, as they will not be able to amend them after the due date. As 

noted earlier, we will provide a summary of the proposals to the civic parties shortly after the 

deadline for carrier proposals, and ask them to submit their final comments.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.4 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 contract 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) 366-5903.5

 

4 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; (3) 49 CFR Part 27 -- Nondiscrimination on the Basis of 

Disability in Programs and Activities Receiving or Benefiting from Federal Financial Assistance; (4) 

14 CFR Part 382 -- Nondiscrimination on the Basis of Disability in Air Travel; and (5) 49 CFR Part 29 --

Government-Wide Debarment and Suspension (Non-Procurement) and Government-Wide Requirements for 

Drug-Free Workplace (Grants).

5 The certifications are also available on the web at http://www.dot.gov/policy/aviation-policy/small-communityrural-air-service/essential-air-service. 
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This Order is issued under authority delegated in 49 CFR Part 1.25a(b) and re-delegated to the 

Director, Office of Aviation Analysis.

ACCORDINGLY,

1. We request that carriers interested in providing Essential Air Service at Chisholm/Hibbing, 

Minnesota, submit their proposals, with subsidy support if necessary, no later than 

January 7, 2014. The proposals should be e-mailed to: michael.f.martin@dot.gov with the 

title “Proposal to Provide EAS at Chisholm/Hibbing, Minnesota”;6

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

3. We will serve copies of this Order on the mayors of Chisholm and Hibbing, Minnesota, the

airport manager of Range Regional Airport, 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 Part 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

online at www.regulations.gov. 

 6 Questions regarding filings in response to this Order may be directed to Michael Martin at (202) 366-6494 or

michael.f.martin@dot.gov. 
Appendix A

AREA MAP

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

Chisholm/Hibbing, Minnesota1

Quarter Year Deplanements Enplanements Total Traffic

Enplanements per 

Day

3 2009 2,507 2,544 5,051 32

4 2009 2,143 2,133 4,276 27

1 2010 2,587 2,752 5,339 35

2 2010 2,748 2,521 5,269 34

Annual 

Totals 9,985 9,950 19,935 32

3 2010 3,053 3,194 6,247 40

4 2010 2,608 2,622 5,230 33

1 2011 2,823 2,959 5,782 38

2 2011 3,010 2,771 5,781 37

Annual 

Totals 11,494 11,546 23,040 37

3 2011 3,273 3,480 6,753 43

4 2011 2,998 2,922 5,920 37

1 2012 2,776 2,908 5,684 37

2 2012 3,133 2,902 6,035 39

Annual 

Totals 12,180 12,212 24,392 39

3 2012 3,293 3,488 6,781 43

4 2012 2,969 2,470 5,439 34

1 2013 2,622 2,716 5,338 35

2 2013 2,773 2,655 5,428 35

11,657 11,329 22,986 37

 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 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.