Order 2013-10-2

Served: October 1, 2013

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 1st of October, 2013

Essential Air Service at

ABERDEEN, SOUTH DAKOTA, and

BEMIDJI, MINNESOTA

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

DOCKET DOT-OST-2011-0137

DOCKET DOT-OST-2011-0134

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is requesting proposals by October 24, 2013, from carriers 

interested in providing Essential Air Service (EAS) at Aberdeen, South Dakota, and/or

Bemidji, Minnesota, for the period beginning March 1, 2014, for two or more years, with or 

without subsidy. 

Background

By Order 2012-1-23, January 26, 2012, the Department selected SkyWest Airlines

(SkyWest), to provide 14 nonstop round trips per week each between Aberdeen and 

Bemidji and Minneapolis-St. Paul International Airport (MSP), through February 28, 

2014.1 All of SkyWest’s service is provided with 50-seat regional jet aircraft and the 

annual subsidy is set at $1,198,222 at Aberdeen and $1,338,293 at Bemidji. 

Request for Proposals

As the end of the current rate terms approach, we are requesting proposals from carriers 

interested in providing service at Aberdeen and/or Bemidji, with or without subsidy, for 

the period beginning March 1, 2014. Carriers should file their proposals by October 24, 

2013. Staff will then docket the proposals, thereby making them public. Shortly 

afterwards, we will provide copies of all timely filed proposals to the communities and 

request community comments by a specified date. We will give full consideration to all 

proposals filed in a timely manner.2 Interested carriers should prepare their proposals 

with every expectation that their initial proposals will also be their final and only 

 1 Order 2012-1-23 also selected SkyWest at Butte, Montana. However, we separately requested proposals 

for service at Butte by Order 2013-10-1.

2 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 basic EAS, required by 49 U.S.C. §41732, 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.
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proposals. 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, if necessary, solicit a new round of proposals. However, we anticipate 

that negotiation or rejection will remain 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 that 

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 communities

and the Department. We anticipate applying our usual carrier-selection criteria and the 

general provisions governing subsidy payments for EAS.3 

As always, we will formally solicit each community’s views on any service options we 

receive before making a long-term, carrier-selection decision. The communities and air 

carriers are encouraged to work together in advance of the due date for proposals to craft 

service patterns that are both desirable to the communities and meet the operational needs 

of the airlines, as carriers cannot amend their proposals after the due date. 

We encourage proposals that meet the communities’ requirements in an efficient manner. 

Bemidji and Aberdeen are strong traffic generating communities and so we will request 

the maximum service level at each community – 67 seats per day in both directions and a 

minimum of two round trips per day.4 Carriers are also welcome to propose more than 

one service option, if they choose; they need not limit themselves to a single specific 

service pattern if they envision other, potentially more attractive service possibilities –

different hubs, or longer terms for the contracted service – with subsidy requirements that 

remain competitive.

Filing Format

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.

 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: (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; (4) community

views; and (5) whether the carrier has included a plan in its proposal to market the service. 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, 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.

4 This works out to two round trips per day with regional jets, three round trips per day with 30-seat 

aircraft, and four round trips per day with 19-seat aircraft.
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Historical Traffic

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

historical traffic for the communities in Appendix B for the most recent annual periods. 

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.5 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. Because the Department is 

prohibited from paying subsidy to carriers that do not submit these documents, the selected 

carrier will be required to submit them in order to receive subsidy. 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.

Community Comments

Civic officials and the States 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 24, 2013, the due date for carrier 

proposals.

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. The Department requests proposals from carriers interested in providing EAS at 

Aberdeen, South Dakota, and/or Bemidji, Minnesota. Carriers should submit proposals, 

with subsidy if necessary, by October 24, 2013. Proposals should be emailed to 

EAS@dot.gov, with the title “Proposal(s) to Provide EAS at Aberdeen, South Dakota, 

and/or Bemidji, Minnesota” 6;

2. These Dockets will remain open until further Order of the Department; and

3. We will serve this Order on the service list for these Dockets.

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

Department’s Regulations, 14 CFR Part 385.31, must file such petitions within seven (7) 

days after the date of service of this Order. 

 

5 The certifications are available on the web at

http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/essential-air-service. 6 Questions regarding filings may be directed to Kevin Adams at 202-366-1047 or Kevin.Adams@dot.gov
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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.regulations.gov
Appendix A

Nonstop Great Circle Miles to Minneapolis (MSP)

RST, Rochester 76

BRD, Brainerd 114

HIB, Hibbing, 174

FSD, Sioux Falls, 196

BJI, Bemidji 199

FAR, Fargo 223

ABR, Aberdeen 257

PIR, Pierre 350

Nonstop Miles to Bemidji (BJI)

FAR, Fargo 97

BRD, Brainerd 85

HIB, Hibbing 99

Nonstop Miles to Aberdeen (ABR)

FAR, Fargo 128

PIR, Pierre 117

FSD, Sioux Falls 153
Appendix B-1

Historical Scheduled Passengers at Aberdeen (ABR), T-100 Market Report

Origin Dest O&D

2010 8 1,693 1,856 3,549

2010 9 1,586 1,576 3,162

2010 10 2,095 2,178 4,273

2010 11 2,218 2,035 4,253

2010 12 2,016 1,858 3,874

2011 1 1,706 1,695 3,401

2011 2 1,631 1,587 3,218

2011 3 1,927 2,081 4,008

2011 4 1,567 1,617 3,184

2011 5 2,034 1,943 3,977

2011 6 2,001 2,193 4,194

2011 7 2,414 2,258 4,672

YE July 31, 2011 22,888 22,877 45,765

2011 8 1,923 2,020 3,943

2011 9 1,871 1,828 3,699

2011 10 2,729 2,823 5,552

2011 11 2,424 2,311 4,735

2011 12 2,253 2,077 4,330

2012 1 2,001 1,948 3,949

2012 2 1,899 1,828 3,727

2012 3 1,797 1,901 3,698

2012 4 1,680 1,815 3,495

2012 5 2,052 1,825 3,877

2012 6 1,797 1,965 3,762

2012 7 1,998 1,825 3,823

YE July 31, 2012 24,424 24,166 48,590

2012 8 1,952 2,134 4,086

2012 9 1,971 1,943 3,914

2012 10 2,564 2,617 5,181

2012 11 2,582 2,373 4,955

2012 12 2,470 2,140 4,610

2013 1 2,037 2,000 4,037

2013 2 1,841 1,650 3,491

2013 3 1,941 2,162 4,103

2013 4 1,644 1,688 3,332

2013 5 2,126 1,908 4,034

2013 6 2,056 2,193 4,249

2013 7 2,120 2,028 4,148

YE July 31, 2013 25,304 24,836 50,140
Appendix B-2

Historical Scheduled Passengers at Bemidji (BJI), T-100 Market Report

Origin Dest O&D

2010 8 2,813 2,507 5,320

2010 9 1,777 1,674 3,451

2010 10 1,707 1,669 3,376

2010 11 1,641 1,568 3,209

2010 12 1,674 1,670 3,344

2011 1 1,595 1,529 3,124

2011 2 1,564 1,454 3,018

2011 3 1,760 1,759 3,519

2011 4 1,573 1,750 3,323

2011 5 1,747 1,768 3,515

2011 6 2,130 2,387 4,517

2011 7 2,672 2,730 5,402

YE July 31, 2011 22,653 22,465 45,118

2011 8 2,788 2,504 5,292

2011 9 2,003 1,890 3,893

2011 10 1,974 1,770 3,744

2011 11 1,740 1,691 3,431

2011 12 1,923 1,940 3,863

2012 1 1,740 1,628 3,368

2012 2 1,647 1,539 3,186

2012 3 1,630 1,612 3,242

2012 4 1,450 1,514 2,964

2012 5 1,583 1,678 3,261

2012 6 1,905 2,127 4,032

2012 7 2,406 2,497 4,903

YE July 31, 2012 22,789 22,390 45,179

2012 8 2,423 2,213 4,636

2012 9 1,825 1,681 3,506

2012 10 1,843 1,754 3,597

2012 11 1,616 1,480 3,096

2012 12 1,751 1,745 3,496

2013 1 1,597 1,458 3,055

2013 2 1,795 1,580 3,375

2013 3 1,599 1,643 3,242

2013 4 1,475 1,499 2,974

2013 5 1,600 1,753 3,353

2013 6 1,940 2,149 4,089

2013 7 2,719 2,724 5,443

YE July 31, 2013 22,183 21,679 43,862
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 this rate, 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 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 funds are not made available for performance beyond [DATE], the 

Department will provide notice in writing to the carrier. 

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 31; August claims must be 

submitted by November 30, and so on.