Order 2010-3-9

Served: March 9, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 9th of March, 2010

Essential Air Service at

MERIDIAN, MISSISSIPPI

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

DOCKET OST-2008-0112

ORDER REQUESTING PROPOSALS

Summary

By this order, the Department is requesting proposals by April 7, 2010, from carriers 

interested in providing essential air service (EAS) at Meridian, Mississippi, for a new 

two-year period, beginning July 1, 2010, with or without subsidy. 

Background

By Order 2008-5-12, May 13, 2008, the Department selected Atlantic Southeast Airlines, Inc., 

d/b/a Delta Connection (ASA) to provide subsidized EAS to Meridian, Mississippi, through 

June 30, 2010. Under that order, the Department authorized subsidy for ASA consisting of 

thirteen nonstop round trips per week year round to Atlanta, Georgia. All of the service was 

to be with 50-seat CRJ-200 aircraft for an annual subsidy of $686,489. 

Request for Proposals

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

carriers interested in providing service at Meridian, with or without subsidy, for the twoyear period beginning July 1, 2010. Carriers should file their proposals by April 7. Staff 

will then docket proposals, thereby making them public, and direct each carrier to serve a 

copy of its proposal on the civic parties and other applicants. 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.1 

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 

 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 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. 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, 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, welldocumented proposals that will facilitate their evaluation by the affected community and 

the Department. We do not anticipate any change in our selection criteria, or in the 

general provisions governing subsidy payments for essential air service.2 

With specific respect to Meridian, we expect proposals consisting of two round trips a 

day (14 per week) with 34-seat or larger aircraft, three round trips a day (18 per week) 

with 30-seat aircraft, or four round trips a day (24 a week) with 19-seat aircraft. Service 

should be to Atlanta or any other suitable hubs with connections to the national air 

transportation system. If aircraft with fewer than 15 passenger seats are contemplated, 

service patterns should consist of nonstop service between the community and the 

proposed hub airport. 

Service should be with two-pilot, twin-engine aircraft, with at least 15 passenger seats, 

unless the community waives their right. In that event, we would also consider proposals 

for five round trips a day with eight- or nine-seat aircraft. If such a proposal is submitted 

and the community waives their right and ultimately supports the service, we would 

consider the waiver to apply only to the two-year carrier-selection at hand, i.e., rather 

than for all time. As always, we will formally solicit the community’s views on any 

service options we receive before making a long-term carrier-selection decision. The 

community and air carriers are encouraged to work together in advance of the due date 

for proposals to craft a service pattern that is both desirable to the community and meets 

the operational needs of the airline.

We encourage proposals that meet these requirements in an efficient manner. As we 

have mentioned, carriers are 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, for example – with 

subsidy requirements that remain competitive.

 2 In selecting a carrier to provide subsidized essential air service, 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 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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We encourage carriers to work with the community as they are preparing their proposals 

so that they can craft them to best meet the community’ needs. As always, we will fully 

consider the community’s views before making a long-term carrier-selection decision. 

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. 

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing 

lobbying activities, drug-free workplaces and nondiscrimination.3 Consequently, all 

carriers receiving Federal subsidy to support 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. All carriers that plan to submit proposals involving subsidy should 

submit the required certifications along with their proposals. 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.4

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 April 7, the due date for carrier 

proposals.

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

Director, Office of Aviation Analysis.

ACCORDINGLY,

1. The Department requests proposals from carriers interested in providing essential air 

service at Meridian, Mississippi. Carriers should submit their proposals, with subsidy if 

necessary, by April 7, 2010. Proposals should include all the data required by section 

204.4 of the Department’s Regulations (14 CFR 204.4). Proposals should be emailed to 

EAS@dot.gov, with the title “Proposal to Provide Essential Air Service at Meridian, 

Mississippi, Docket DOT-OST-2008-0112.” Questions regarding filings may be directed 

to Kevin Adams at 202-366-1047 or Kevin.Adams@dot.gov;

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

 

4 The certifications are also available on the web at http://ostpxweb.dot.gov/aviation/index.html.
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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 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 Meridian (MEI)

Atlanta, ATL 267

Memphis, MEM 200

New Orleans, MSY 185

Jackson, JAN 78

Birmingham, BHM 143

Columbus, GTR 136

Hattiesburg, PIB 69

This map is provided by Sabre® AirVisionTM Profit Essentials and is being used with express permission of the 

copyright holder, Sabre Airline Solutions®.
Appendix B

Meridian Passengers to/from Atlanta, T-100 Market Data

Deplaned Enplaned Total

Year Month Passengers Passengers Passengers

2007 1 1,151 1,145 2,296

2007 2 965 970 1,935

2007 3 1,486 1,402 2,888

2007 4 1,269 1,239 2,508

2007 5 1,326 1,437 2,763

2007 6 1,428 1,352 2,780

2007 7 1,179 1,124 2,303

2007 8 1,296 1,198 2,494

2007 9 1,328 1,314 2,642

2007 10 1,505 1,551 3,056

2007 11 1,500 1,398 2,898

2007 12 1,236 1,229 2,465

CY 2007 15,669 15,359 31,028

2008 1 1,208 1,215 2,423

2008 2 1,135 1,195 2,330

2008 3 1,553 1,482 3,035

2008 4 1,464 1,488 2,952

2008 5 1,807 1,999 3,806

2008 6 1,633 1,728 3,361

2008 7 1,969 2,001 3,970

2008 8 1,627 1,653 3,280

2008 9 1,509 1,510 3,019

2008 10 1,620 1,732 3,352

2008 11 1,659 1,721 3,380

2008 12 1,555 1,854 3,409

CY 2008 18,739 19,578 38,317

2009 1 1,400 1,297 2,697

2009 2 1,277 1,470 2,747

2009 3 1,574 1,837 3,411

2009 4 1,554 1,519 3,073

2009 5 1,484 1,766 3,250

2009 6 1,614 1,677 3,291

2009 7 1,611 1,784 3,395

2009 8 1,558 1,488 3,046

2009 9 1,346 1,378 2,724

2009 10 1,497 1,484 2,981

2009 11 1,414 1,378 2,792

2009 12 1,131 1,325 2,456

CY 2009 17,460 18,403 35,863
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.

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.

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.
Appendix D

Page 1 of 3

Distribution List Name: Scheduled Air Carriers, Contiguous US and Puerto Rico

Air Sunshine, Inc.

Air Sunshine, Mirmohammad Adili

Air West, Inc., John Raatz

Air Wisconsin, Annette Daly

Airline Associates, Bill Mishk

Alaska Airlines, Jeff Cole

Alaska Airlines, Sandy Sinick

Allegiant Air, Robert Ashscroft 

American Airlines, Carl Nelson

American Eagle, Jeffrey Hartz 

Atlantic Southeast, Jon Lindlief

Atlantic Southeast, Roger Weston

Bemidji Aviation, Cori Rude 

Bemidji Aviation, Arlen Rinkenberger

Cape Air, Andrew Bonney 

Cape Air, Dan Wolf 

Cape Air, J.Flaherty

Classic Aviation, Tony Henderson

Colgan Air, Mike Colgan 

CommutAir, Andy Price

CommutAir, Joel Raymond

Consultant, Robert Silverberg

Continental, Bruce Keiner

Continental, Dan Weiss

Continental, Lorry Halloway

Delta, Amy Martin 

Delta, Dan Shuman

Delta, Jeff Morgan 

Delta, Joe Esposito 

Delta, Karen Zachary 

Delta, Sascha Vanderbellen

Dorato Jets

Dorato Jets, Mark McKenna

Era Aviation, Mike Lenorman

Executive Airlines, Kate Soled

Frontier Flying, Bob Hajducovich

Gem Air, Dan Schroeder

Gem Air, JoAnn Wolters
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Appendix D

Page 2 of 3

Distribution List Name: Scheduled Air Carriers, Contiguous US and Puerto Rico

Great Lakes, Chuck Howell

Great Lakes, Doug Voss 

Great Lakes, Greg Stephens

Gulfstream, Dave Hackett

Gulfstream, Mickey Bowman

Gulfstream, T. Cooper 

Homeland Security, Bill Ragan

Homeland Security, David Bernier

Homeland Security, Randy Webb 

Horizon Airlines, Dan Russo

Horizon Airlines, Jennifer Thompson 

Horizon, Jeff Cole

ICEPR, Luis Irizarry

Intrepid Interntl Air, Rick Eyk

Island Air Charters, Linda House

Jet Air, Daniel Wolford

Kenmore Air, Tim Brooks 

McCall Aviation and Salmon Air, Dan Scott

McCall Aviation, Michelle

Mesa Air, Jonathan Ornstein

Mesa Air, Michael Lotz 

Mesa Air, Mike Holcomb

Mesaba, John Spanjers 

Mesaba, Max Shemesh

Midstar Airlines, Jeffrey Fonner

Midwest Airlines, Anthony Intravia 

Midwest Airlines, Greg Aretakis

Midwest Airlines, J.C. Augustson

MN Aviation, Jose Maldonado 

Multi Aero, Darnea

Multi Aero, Shane Storz

Northwest, Tim McDonald 

NYDC, Henok Araya

OST, Brian Swanson

OST, Dennis DeVany

OST, Kevin Adams

OST, Kevin Schlemmer

OST, Michael Martin 

OST, Renee Williams

Pacific Wings, Frank Ford

Pacific Wings, Greg Kahlstorf
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Appendix D

Page 3 of 3

Distribution List Name: Scheduled Air Carriers, Contiguous US and Puerto Rico

PenAir, Danny Seybert

PenAir, Scott Bloomquist

Pinnacle Airlines, Joe Williams 

Pinnacle Airlines, Phil Reed

Public Charters, Jim Gallagher

Scenic, Mary Schneider

Scenic, Mitzi Daines

Seaborne Airlines, Wayne D'Amico

SeaPort Airlines, Jim Day 

SeaPort Airlines, Rob McKinney

Shuttle America, Jerry Balsano 

SkyWest, Eric Christensen

SkyWest, Michael Thompson

Sovereign Air, Bob Karns

Sovereign Air, Lois R. Barton

Tradewind, Eric Zipkin 

TransStates, Fred Oxley

Transtates, Gerry Wigmore 

United, Alicia Gabriel

United, James Starnes

US Airways, Benjamin Slocum

US Airways, Howard Kass

US Airways, Jason Reisinger 

Warbelows Air Ventures, Art Warbelow

Wings Air (Air Greco), Aaron Goerlich