Order: 2013-8-4

Served: August 13, 2013

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 13th day of August, 2013

 DOT-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, 2014, with or without subsidy. Proposals are due September 19, 2013. (See 

Appendix A for an area map.) 

Background

By Order 2011-12-4, December 13, 2011, the Department selected Great Lakes Aviation, Ltd. 

(Great Lakes) to provide 12 nonstop round trips per week to Denver International Airport using 

19-passenger Beech 1900 aircraft, for the two-year period from February 1, 2012, through 

January 31, 2014, 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 filed no later than September 

19, 2013. After 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 community and ask them to submit 

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

Interested carriers 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 discretion to reject outright all 

unreasonable or unrealistic proposals and solicit 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 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 communities and the Department.2

With respect to Pueblo, we ask that carriers submit proposals for two nonstop round trips per day

(12 round trips per week) with 15-seat or larger aircraft 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 community 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 interested in submitting a proposal. 

We encourage proposals 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. Carrier proposals should be submitted 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 proceed 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 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.
- 3 -

Service and Traffic History

For the 12-month period ended June 30, 2013, the most recent quarterly period for which traffic data 

are available, Pueblo averaged 13.5 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 subsidy 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 detailed 

information regarding these requirements should contact the Office of Aviation Analysis at 

(202) 366-5903.5

Community and State Comments

The community 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, 2014, 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 EAS 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 disability 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 (nonprocurement) 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/aviationpolicy/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. This docket will remain open until further Order of the Department; and

3. We will serve copies of this Order on the Mayor of Pueblo, the Director 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), must 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 

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 

AREA MAP

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

 

Traffic History1

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

Total for most recent 12 months 8,481

Average daily enplanements at Pueblo (12-months ended 6/30/2013) – 13.52

 

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 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 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.