Order: 20 1 3

- 8

- 4

Served: August 13 , 20 1 3



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 1 3 th day of August, 201 3

DO T

- OST

- 1999

- 6589

ORDER REQUESTING PROPOSALS

Summary By this Order

, the Department is requesting proposals from carriers interested in providing

Essential Air Service (EAS) at Pueblo

, Colorado , for a new contract period beginning February 1, 201 4 , with or without subsidy . Proposals are due September 19 , 2013

. ( See Appendix A for an area map.)

Background By Order 20 11

- 1 2

- 4

, December 13, 2011 , the Department selected Great Lakes Aviation, Ltd. (Great Lakes) to provide 1 2 nonstop round trips per week to Denver International Airport using

19

- p assenger Beech 1900 aircraft, for the two

- year period from February 1, 201 2 , through January 31, 201 4 , at an annual subsidy amount of $ 1,592,276

.

Request for Proposals

As the end of the current rate term approaches, we are here requesting proposals from carriers interested in providing service at Pueblo , with or without subsidy, to be file d no later than September

19 , 2013

. A fter that date, our staff will docket the proposals, thereby making them public. Shortly

Essential Air Service at

PUEBLO

, COLORADO

under 49 U.S.C. 41731 et seq.- 2

-

afterwards, we will provide a summary of the proposals to the communit y and ask them to submit

their final comments. We will give full consideration to all proposals that are timely filed. 1

Interested car riers 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. We also retain the d iscretion to reject outright all unreasonable or unrealistic proposals and sol icit 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 pres cribe 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 communities and the Department. 2

With respect to Pueblo

, w e ask that carriers submit proposals for t wo nonstop round trips per day (12 round trips per week) with 15

- seat or larger aircraf t or three round trips per day ( 18 total round trips per week) with aircraft seating fewer than 15 seats

, to Denver International Airport

,

or another suitable hub where numerous connections to the national air transportation system can

be made.

The c ommunit y 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 operational

needs of the airline inter ested in submitting a proposal.

We encourage pro posals 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 themselves to those requirements if they envision other, potentially more attractive service possibilities

-- different hubs or length of service terms , for example

-- with subsidy requirements that remain competitive. C arrier proposals s hould be s ubmitted to the Department with all materials merged into a single document. The document will be published on Regulations.gov and each page

should be formatted to be viewed online.

1 Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide

Essential Air Service without subsidy and we determine that service can be reliably provided without such compensation, we typically do not proc eed 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 EAS, 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 con sider 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 select ion Order as part of our authorization of subsidy for the selected service. Appendix C of this Order contains those general provisions.- 3

-

Service and Traffic History

For the 12

- month period end ed June 30, 2013

, th e most recent quarterly period for which traffic data are available, Pueblo averaged 1 3.5 enplanements per day. 3 In order to assist carriers in making their traffic and revenue forecasts, we have included historical traffic data in Appendix B.

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 Essential Air Service 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 su bsidy 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 detai led information regarding these requirements should contact the Office of Aviation Analysis at (202) 366

- 5903. 5

Community and State Comments

The communit y and state are welcome to submit comments on the proposals at any time. As noted earlier, however, we will provide a summary of the proposals to the civic parties and ask them to submit their final comments shortly after September 19 , 2013

, the due date for proposals.

This Order is issued under authority delegated in 49 CFR 1.25a(b)

.

ACCORDINGLY,

1. We request that carriers interested in providing Essential Air Service at Pueblo

, Colorado

, for

the period beginning February 1, 201 4

, submit their proposals, with or without requests for subsidy, no later than September 19 , 2013

. The proposals should be e

- mailed to EAS@dot.gov

, with the title: “Proposal to Provide E AS at Pueblo

, CO ; 6

3 See Appendix B for historical traffic data. Enplanements represent one

- half of total origin

- and

- destination traffic, and average enplanements per day are based on 313 service days a year

. 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; 49 CFR Part 27

– Nondiscrimination on the basis of disa bility 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

procuremen t) and government

- wide requirements for drug

- free workplace (grants).

5 The certifications are available online under “Reports and Publications” at http://www.dot.gov/policy/aviation

policy/small

- community

- rural

- air

- service/essential

- air

- service

6 Questions regarding filings in response to this order may be directed via electronic mail to Kevin Schlemmer at kevin.schlemmer@dot.gov or via phone at (202) 366

- 3176.- 4

-

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

3 . We will serve co pies of this Order on the Mayor of Pueblo

, the D irector of Aviation at Pueblo

Memorial Airport

, and the service list for this Docket

.

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

Aviation Economic Regulations, 14 CFR 385. 31(a) , m ust 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

p reclude its effectiveness.

By:

TODD M. HOMAN

Director Office of Aviation Analysis

(SEAL)

An electronic version of this document is available at http://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

Traffic History 1

Pueblo

, CO ( PUB )

Year Quarter Outbound pax Inbound pax Total

2010 3 1,522 1,537 3,059

2010 4 1,292 1,288 2,580

2011 1 1,282 1,315 2,597

2011 2 1,561 1,633 3,194

2011 3 1,760 1,721 3,481

2011 4 1,403 1,361 2,764

2012 1 1,188 1,188 2,376

2012 2 983 925 1,908

2012 3 973 892 1,865

2012 4 1,107 1,103 2,210

2013 1 1,019 1,033 2,052

2013 2 1,232 1,122 2,354

8,481 Total for most recent 12 months

Average daily enplanements at Pueblo ( 12

- months end ed 6/30/2013 )

– 1 3

. 5 2

1 Source

– T

- 100 Market Report, Passengers in Scheduled Passenger Service. Great Lakes Airlines service only.

2 Average daily enplanements= total traffic for the most recent 12

- month period (8,481 passengers) divided by 313 service days divided by 2.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 co mpleted, 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 writt en 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 oper ated; 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 me t 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 locati on 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 pa ragraph.

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.

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.