Order 2012

- 3

- 11

Served: March 20, 2012



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 20 th day of March, 2012

Essential Air Service at

CEDAR CITY, UTAH

Under 49 U.S.C. 41731 et seq

. DOCKET DOT

- OST

- 2003

- 16395



### ORDER

Summary By this Order, the De p a rtment is approving the re quest of SkyWest Airlines, operating as Delta

Connection (SkyWest) to temporarily delay upgrading aircraft at Cedar City , Utah, to 50

- passenger Canadair Jet 200 (CRJ200) aircraft from 30

- passenger Embraer Brasilia (EMB120)

aircra ft, effective January 1, 2012, until further notice, and adjust ing the ir annual subsidy to $1,859,403

.

Background By Order 2011

- 9

- 10, September 15, 2011, the Department re

- selected SkyWest to provide Essential Air Service (EAS) at Cedar City . It proposed to operate CRJ200 aircraft for a two

- year period be ginning January 1, 2012, through December 31, 2013, for an annual subsid y of $2,273,395.

Carrier Proposal On January 11, 2012, SkyWest notified the Department in writing that it discovered that the Cedar City airport does not have the required operational permits from the Federal Aviation Administration (FAA), including a com pleted environmental assessment, for scheduled jet service. SkyWest and the airport are working together to obtain that authorization. In response, SkyWest submitted a subsidy proposal based on its operating the EMB120 at a significantly reduced subsidy rate. S kyWest will continue to operate the EMB120 aircraft while the airport is in the process of ga ining approval for jet service. Once the final approval is given, SkyWest will2

transition to jet service at the earliest possible schedule peri od, which typically requires a two

- to
four

- month lead time.

Community Comments Joe Burgess, Mayor of Cedar City, indicates that the community is aware of the situation and it

finds it acceptable for SkyWest to use EMB120 aircraft until it can upgrade to the CRJ2 00

. Mayor Burgess requests that

, should CRJ200 service be delayed beyond June 1 , the community

reserves the opportunity to publically exp r ess their concerns to the Department.

Decision

We will approve SkyWest’s request and adjust their annual subsidy to $1,859,403, per the rate sheet in Appendix A. We reiterate that we allow SkyWest to continue to use the EMB120 aircraft on a temporary basis only, and that we fully expect SkyWest to serve Cedar City with

CRJ200 aircraft as soon as the airport has the required operational permits

.

This Order is issued under authority delegated in 49 CFR 1.56a(f)

ACCORDINGLY,

1. We approve the alternate aircraft request by SkyWest Airlines to 30

- passenger Embraer

Brasilia 120 aircraft at Cedar City, Utah and adjust the annual subsidy rate to $1,859,403 ; and

2. We will serve a copy of this O rder on the Mayor and Airport Manager of Cedar City , and SkyWest Airlines

.

By:

SUSAN L. KURLAND Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available on line at www.regulations.govAppendix AAppendix B

SkyWest Airlines

Essential Air Service to be Provided at Cedar City, Utah

Effective Period : January 1, 2012 , until SkyWest inaugurates jet service

Scheduled Service : Two weekday and weekend nonstop round trips (12 a week) to Salt Lake City

Aircraft : 3 0

- seat passenger Embraer Brasilia 120 (EMB120 )
Rate per Eligible Flight: $1,520 ; 1

Weekly Ceiling : $ 36,480 2

Note: 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 sched uled 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 t he 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 loc ate 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 fo r 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 ly , 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 the carrier do not constitute a total or partial reduction or cessation of payment.

Funds are not currently available for performance under this Order beyond September 30, 2012

. The Department’s obligation for performance under this Order beyond September 30, 2012 , is subject to 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 m ay arise for performance under this Order beyond September 30, 2012 , until funds are made available to the Department for performance. If funds are not made available for perfo rmance beyond September 30, 2012 , 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 must be submitted within 60 days of the last day of service provided under this Order

.

1 Annual compensation of $ 1,859,403 divided by 1,223 annual departures (24 weekly departure s x 52 weeks x 98 percent completion).

2 24 arrivals and departu res per week multiplied by $1,520 per flight.