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 9 th of March, 2010

Essential Air Service at

MERIDIAN

, MISSISSIPPI

Under 49 U.S.C. 41731 et seq

. DOCKET OST

- 200 8

- 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 200 8

- 5

- 12

, Ma y 13 , 200 8 , the Department selected Atlantic Southeast Airlines, Inc., d/b/a Delta Connection (ASA) to provide subsidized EAS to Meridian

, Miss issippi

, 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 subsi dy of $ 686,489

.

Request for Proposals

As the end of the current rate term s approach, we are here by requesting proposals from carriers interested in providing service at Meridian

, with or without subsidy, for the two

year period beginning July 1, 2010

. Carriers should file their proposals by April 7

. S taff

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 summar y of the proposals to the community and S tate and as k 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 nec essary, 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.- 2

-

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 prepar e 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 t he 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 propo sals 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 respec t to Meridian , we expect proposals consisting of two round trips a day ( 14 pe r 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

sh ould 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.

S ervice 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 aircraf t. 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 operation al needs of the airline.

We encourage proposals that meet th e se requirements in an efficient manner. As we have mentioned, c arriers are welcome to propose more than one service option, if they

cho ose; 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 Appropri ations 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 carri ers 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

-

We encourage carriers to work with the c ommunit y as they are preparing their proposals so that they can craft them to best meet the communit y ’ needs. As always, we will fully

consider the community ’ s views before making a long

- term carrier

- selection decision.

Historical Traffic

In order to a ssist 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 ac tivities, 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

nondiscrim ination, 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 shoul d 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

- 590 3 . 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 summar y 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

Directo r, Office of Av iation 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 shou ld 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

- 200 8

- 0112

. ” Q uestions regarding filings may be directed

to Kevin Adams at 202

- 366

- 1047 or Kevin.Adams@dot.gov ;

2

. Th is D ocket 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.- 4

-

3 . We will serve this order on the s ervice l ist for th ese Docket s

.

Persons ent itled 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.govAppendix 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 ® AirVision TM 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 35,863Appendix 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 require d 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, su ch 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; fligh ts 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 e xtent 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 requir ement 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 curre ntly 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], t he 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 Carr iers, 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, Rob ert 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 Hajducov ich
Gem Air, Dan Schroeder
Gem Air, JoAnn Wolters- 2

-

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

Mes a 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

Mu lti 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- 3

-

Appe ndix 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, Mar y 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 Wa rbelow
Wings Air (Air Greco), Aaron Goerlich