### O rder: 2015

- 4

- 26

Served: April 30, 2015



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 30th of April , 20 1 5

ORDER REQUESTING PROPOSALS

Summary

By this O rder, the U.S. Department of Transportation (the Department) is requesting

proposals from air ca rriers interested in providing E ssential A ir S ervice (EAS) at Cape

Girardeau/Sikeston, Missouri (Cape Girardeau), Marion/Herrin, Illinois (Marion), and Quincy

, Illinois/Hannibal, Missouri (Quincy) for a new contract period beginning December 1, 201 5

, wit h or without subsidy

. (See Appendix A for a map). Air c arriers should file their proposals

no later than June 4, 2015

.

Background

By Order 2011

- 4

- 12 (April 11

, 2011 ), the Department selected Hyannis Air Service, Inc. d/b/a

Cape Air (Cape Air)

, to provid e EAS at the above mentioned communities for a four

- year

period beginning December 1, 2011, through November 30, 2015, for a combined annual

subsidy rate of $5,689,438 ($1,627,966 for Cape Girardeau, $2,104,616 for Marion, and

$1,956,856 for Quincy).

The complet e public file for EAS at the three communities may be accessed online through

the Federal Dockets Management System at www.regulations.gov by entering each

community’s respective docket number in the “Searc h for Rules, Comments, Adjudications,

or Supporting Documents” field.

Request for Proposals

As the end of the current contract s approach

, the Department is requesting proposals from air

carriers interested in providing EAS at Cape Girardeau, Marion and /or Quincy

, with subsidy

support if necessary , for a new contract period beginning December 1

, 201 5

. Carriers should

file their proposals no later than June 4

, 20 15

. Staff will the n docket the proposals, thereby

Essential Air Service at

CAPE GIRARDEAU/SIKESTON, MISSOURI

MAR ION/HERRIN, ILLINOIS

QUINCY , ILL INOIS /HANNIBAL, MISSOURI

Under 49 U.S.C. § 41731 et seq

. DOT

- OST

- 1996

- 1559

DOT

- OST

- 2000

- 7881

DOT

- OST

- 2003

- 14492

### - 2

-

making them public

. Shortly afterwards, we w ill provide a summary of the proposals to the

communit ies and ask them to submit their final comments. We will give full consideration to

all proposals that are timely filed. 1



### Interested air 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; in such cases, of course, we will

give all applicants the same opportunity. We a lso retain the discretion to reject outright all

unreasonable or unrealistic proposals and solicit a new round of proposals. However,

negotiation and rejection are only occasional exceptions to the rule.

We are here providing interested air carriers with some basic information to serve as guidance

when they prepare their proposals, but we will not prescribe a precise format

. P roposals

should be submitted to the Department with all materials merged into a single document. In

addition, because the documen t will be published on www.regulations.gov

, each page should

be formatted to be viewed online. We expect proposals to adequately describe the service

being proposed and the annual amount of subsidy being requeste d. The applicants can make

their own judgments as to the level of detail they wish to present; however, we recommend

they include information concerning proposed schedules and projected block hours . In

addition, applicants are urged to provide financial data supporting their subsidy requests,

including information on their projected expenses and revenues. We strongly encourage clear,

well

- documented proposals that will facilitate their evaluation by the affected communit ies

and the Department. 2



### Proposal s should provide sufficient capacity to accommodate historical levels of traffic. In

order to assist air carriers in developing traffic and revenue projections for their proposals, we

have provided a summary of historical passengers in Appendi x B. During the calendar year

ending December 31

, 2014

, Cape Girardeau avera ged 20 enplanements per day, Marion and

Quincy averaged 31 enplanements per day. 3 

### The Department therefore expects proposals that

are co nsistent with what the communities currently receive

, with service to STL or another

hub airport that provides numerous connecting opportunities to the national air transportation

1 Carriers should not expe ct th e Department to accept late fil ings. In cases where a carrier proposes to provide

EAS without subsidy and we determine that basic EAS, as required by 49 U.S.C. § 41732, can be reliably

provided without such compensation, we typically will 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 for an eligible place not in Alaska, 49 U.S.C. § 41733(c)(1)

directs us to consider five facto rs: (a) service reliability; (b) contractual and marketing arrangements with a

larger carrier at the hub; (c) interline arrangements with a larger carrier at the hub; (d) community views, giving

substantial weight to the views of the elected officials rep resenting the users; and (e) whether the carrier has

included a plan in its proposal to market its service to the community. In addition, the Consolidated

Appropriations Act, 2014, Public Law No. 113

- 76, and continued in the Continuing Appropriations Reso lution,

2015, Public Law No. 113

- 164, 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 carr iers 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 So urce: Bureau of Transportation Statistics, Schedule T

- 100.

### - 3

-

system. For air carriers proposing service with 9

- passenger aircraft, the Department expects

24 weekly round trips for Cape Girar deau, and 36 weekly round trips for Marion and Quinc y.

For air carriers proposing 19

- passenger or larger aircraft, the Department expect s proposals

for two round trips a day (1 2 to 1 4 per week). Air c arriers are also welcome to propose more

than one serv ice option, if they choose. T hey also need not limit themselves to the se

requirements if they envision other, potentially more attractive service possibilities

-- different

hubs or length of contract, for example

-- with subsidy requirements that remain c ompetitive.

Community Comments

The communities and State s are welcome to submit comments at any time. We encourage

prospective applicants to contact the community before they submit their proposals so that

they can tailor them to the community’s needs, a s they will not be able to amend them after

the due date. As noted earlier, we will provide a summary of the proposals to the civic parties

shortly after the deadline for carrier proposals, and ask them to submit their final comments.

Other Carrier Requi rements

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 EAS must certify that they are in complia nce with Department regulations

regarding drug

- free workplaces and nondiscrimination, and those carriers whose subsidies

exceed $100,000 over the life of the contract must also certify that they are in compliance with

the regulations governing lobbying act ivities. 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 requi red certifications. Interested carriers requiring more detailed information

regarding these requirements should contact the Offic e of Aviation Analysis at

(202) 366

- 5903. 5



### This Order is issued under authority delegated in 49 CFR Part 1.25a(b) and re

- dele gated to the

Director, Office of Aviation Analysis.

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 Trans portation

– 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

–

Nondiscriminatio n on the basis of disability in air travel; and (3) 2 CFR Part 1200

– Government

- wide debarment

and suspension (non

- procurement) and government

- wide requirements for drug

- free workplace (grants).

5 The certifications are also available on the web at http://www.dot.gov/policy/aviation

- policy/small

- community

rural

- air

- service/essential

- air

- service

.

### - 4

-

ACCORDINGLY,

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

Girardeau/Sikeston, Missouri

, Marion/Herrin, Illinois, and Quincy, Illinois/Hannibal,

Missouri, submit their proposals, with subsidy support if necessary , no later than June 4

, 20 15

. The proposals should be e

- mailed to: michael.f.martin@dot.gov ; 6



### 2. Th ese docket s will remai n open until further O rder of the Department; and

3 . We will serve copies of this O rder on the mayors of Marion, Herrin, Quincy, Hannibal,

Cape Girardeau, and Sikeston, and the airport managers of Cape Girardeau Regional Airport

, Williamson County Regional Airport (Marion), Quincy Regio nal Airport, and the service list

for this docket.

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

Regulations, 14 CFR Part 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

o nl ine at www.regulations.gov

.

6 Questions regarding filings in response to th is O rder may be directed to Michael Martin at (202) 366

- 6494 or

michael.f.martin@dot.gov

.

### Appendix A

AREA MAP

Map s generated by the Great Circle Mapper

- copyright © Karl L. Swartz

.

### Appendix B

Page 1 of 3



## Cape Girardeau, Missouri

Year Quarter Deplanements Enplanements Total

Traffic Enplanements

per Day

201 1 1 1,113 1,271 2,384 15

2011 2 1,225 1,412 2,637 17

2011 3 1,427 1,602 3,029 19

2011 4 1,481 1,651 3,132 20

Annual

Totals 5,246 5,936 11,182 18

2012 1 1,267 1,387 2,654 17

2012 2 1,316 1,591 2,907 19

2012 3 1,466 1,586 3,052 19

2012 4 1,44 6 1,662 3,108 20

Annual

Totals 5,495 6,226 11,721 19

2013 1 1,305 1,456 2,761 18

2013 2 1,456 1,705 3,161 20

2013 3 1,531 1,599 3,130 20

2013 4 1,474 1,671 3,145 20

Annual

Totals 5,766 6,431 12,197 19

2014 1 1,165 1,349 2,514 16

201 4 2 1,507 1,725 3,232 21

2014 3 1,632 1,747 3,379 21

2014 4 1,498 1,690 3,188 20

Annual

Totals 5,802 6,511 12,313 20

### Appendix B

Page 2 of 3



## Marion, Illinois

Year Quarter Deplanements Enplanements Total

Traffic Enplanements

per Day

2011 1 1,904 2,084 3,988 26

2011 2 2,2 22 2,425 4,647 30

2011 3 2,433 2,569 5,002 32

2011 4 2,529 2,696 5,225 33

Annual

Totals 9,088 9,774 18,862 30

2012 1 2,133 2,275 4,408 29

2012 2 2,425 2,579 5,004 32

2012 3 2,422 2,619 5,041 32

2012 4 2,470 2,703 5,173 33

Annual

Totals 9,4 50 10,176 19,626 31

2013 1 2,193 2,336 4,529 29

2013 2 2,447 2,703 5,150 33

2013 3 2,524 2,723 5,247 33

2013 4 2,392 2,709 5,101 32

Annual

Totals 9,556 10,471 20,027 32

2014 1 2,080 2,266 4,346 28

2014 2 2,407 2,687 5,094 33

2014 3 2 ,479 2,642 5,121 32

2014 4 2,439 2,698 5,137 33

Annual

Totals 9,405 10,293 19,698 31

### Appendix B

Page 3 of 3



## Quincy, Illinois

Year Quarter Deplanements Enplanements Total

Traffic Enplanements

per Day

2011 1 1,811 1,930 3,741 24

2011 2 2,176 2,225 4,401 28

2011 3 2,359 2 ,393 4,752 30

2011 4 2,336 2,535 4,871 31

Annual

Totals 8,682 9,083 17,765 28

2012 1 1,955 2,133 4,088 27

2012 2 2,339 2,421 4,760 31

2012 3 2,255 2,509 4,764 30

2012 4 2,670 3,051 5,721 36

Annual

Totals 9,219 10,114 19,333 31

2013 1 2,254 2,366 4,620 30

2013 2 2,410 2,623 5,033 32

2013 3 2,574 2,780 5,354 34

2013 4 2,563 2,844 5,407 34

Annual

Totals 9,801 10,613 20,414 33

2014 1 2,059 2,269 4,328 28

2014 2 2,460 2,588 5,048 32

2014 3 2,545 2,610 5,155 33

2014 4 2,497 2,642 5,139 33

Annual

Totals 9,561 10,109 19,670 31

### 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 term s 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 dest ination 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 c arrier 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 s elect 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 devia ting 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, e ither partially or complete, 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 amoun ts 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 t o in writing by the Department and carrier do not

constitute a total or partial reduction or cessation of payment.

Funds may not be available for performance under this Order beyond [DATE]. The Government’s

obligation for performance under this Order bey ond [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 t he Department for performance. If sufficient funds are not made available for

performance beyond [DATE] , the Department will provide notice in writing to the carrier.

Subsidy contracts are subject to, and incorporate by reference, relevant statutes and D epartment

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, including any amended cl aims, must be submitt ed within 9 0 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 st 

### ; August claims must be submitted by November 30 th 

### , and so on.