Order 2012-8-18

Served: August 17, 2012

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 17th of August, 2012

Essential Air Service at

EL CENTRO, CALIFORNIA

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

DOCKET DOT-OST-2008-0299

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is requesting proposals by September 18, 2012, from 

carriers interested in providing Essential Air Service (EAS) at El Centro, California, for a 

new contract beginning January 1, 2013, with or without subsidy. 

Background

By Order 2010-12-6, the Department selected SkyWest Airlines, Inc., d/b/a United 

Express, to provide EAS at El Centro, California, through December 31, 2012.1 Annual 

subsidy and service levels were set as 13 nonstop round trips per week to Los Angeles for 

$1,852,091 annual subsidy, with 30-seat Embraer Brasilia aircraft. 

Request for Proposals

As the end of the current rate term approaches, we are requesting proposals from carriers 

interested in providing service at El Centro, with or without subsidy, for a new contract 

beginning January 1, 2013. Carriers should file their proposals by September 18, 2012. 

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

will provide a summary of the proposals to the community and State and ask them to 

submit their final comments. 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 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.

 1 On March 1, 2011, SkyWest began basing its aircraft in El Centro, thereby providing the community with 

the early morning nonstop to Los Angeles the community had been seeking, and traffic increased. 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 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.
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This Order provides interested carriers with some basic information 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, 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. We 

anticipate applying our usual carrier-selection criteria and the general provisions 

governing subsidy payments for EAS.3 

With specific respect to El Centro, we expect proposals consisting of two round trips per 

day (13 a week) if 30-seat or larger equipment are proposed; three (18 a week) or four 

(24 a week) round trips per day with 19-seat aircraft; and more frequencies with smaller 

aircraft. We may subsidize additional frequencies if the affected community is served in 

conjunction with another community. 

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

Carriers are also welcome to propose more than one service option, if they choose; they

need not limit themselves to the current 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.

We encourage carriers to work with the community in advance of the due date for 

proposals when proposals can still be adjusted so that they can craft them to best meet the 

community’s needs. As always, we will fully consider the community’s views before 

making a long-term carrier-selection decision. 

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.

Historical Traffic

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

included historical traffic for the community in Appendix B. For the year ended May 31, 

2012, El Centro generated 13,296 passengers, or 21 enplanements per day.

 3 In selecting a carrier to provide subsidized EAS, 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.
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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 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 State 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 September 18, the due date for carrier 

proposals.

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

the Director, Office of Aviation Analysis.

ACCORDINGLY,

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

Centro, California. Carriers should submit their proposals, with subsidy if necessary, by 

September 18, 2012. Proposals should be emailed to EAS@dot.gov, with the title 

“Proposal to Provide EAS at El Centro, Docket DOT-OST-1997-2649.” Questions 

regarding filings may be directed to Kevin.Adams@dot.gov or 202-366-1047;

2. This Docket will remain open until further order of the Department; and

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

 4 The certifications are available on the web at http://ostpxweb.dot.gov/aviation/index.html.
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Persons entitled to petition the Department for review of this Order under the 

Department’s 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 on the World Wide Web at

http://www.regulations.gov
Appendix A

Nonstop Great Circle Miles from El Centro, IPL

YUM, Yuma 58

SAN, San Diego 94

LAX, Los Angeles 181

PHX, Phoenix 211

TUS, Tuscon 275

§
Appendix B

Historical Passengers at El Centro/Imperial, California

Per T-100 Market Report

Year Month Origin Dest O&D

2009 6 470 433 903

2009 7 381 398 779

2009 8 444 440 884

2009 9 399 477 876

2009 10 445 464 909

2009 11 458 482 940

2009 12 410 477 887

2010 1 428 446 874

2010 2 413 426 839

2010 3 502 518 1,020

2010 4 338 325 663

2010 5 424 403 827

YE 5/31/10 5,112 5,289 10,401

2010 6 401 360 761

2010 7 372 376 748

2010 8 356 423 779

2010 9 369 412 781

2010 10 392 433 825

2010 11 370 391 761

2010 12 386 468 854

2011 1 363 332 695

2011 2 387 428 815

2011 3 523 541 1,064

2011 4 494 526 1,020

2011 5 513 548 1,061

YE 5/31/11 4,926 5,238 10,164

2011 6 515 446 961

2011 7 471 510 981

2011 8 466 484 950

2011 9 583 602 1,185

2011 10 605 669 1,274

2011 11 614 626 1,240

2011 12 602 650 1,252

2012 1 518 486 1,004

2012 2 517 552 1,069

2012 3 585 608 1,193

2012 4 563 590 1,153

2012 5 517 517 1,034

YE 5/31/12 6,556 6,740 13,296
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