Order: 2014-7-6 

Served: July 10, 2014 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 10th day of July, 2014 

 Essential Air Service at 

 SILVER CITY/HURLEY/DEMING, NEW MEXICO 

Under 49 U.S. C. § 47131 et seq.

 DOT-OST-1996-1903 

 

 

ORDER REQUESTING PROPOSALS 

Summary 

By this Order, the Department is requesting proposals from air carriers interested in providing 

Essential Air Service (EAS) at Silver City/Hurley/Deming, New Mexico, (“Silver City”) with or 

without subsidy support, for a new term beginning December 1, 2014. Proposals are due 

August 12, 2014. (See Appendix A for a map.) 

Background

By Order 2012-11-33, issued on November 29, 2012, the Department re-selected Great Lakes 

Aviation, Ltd. (“Great Lakes”) to provide subsidized EAS at Silver City, using 19-seat 

Beechcraft B-1900D aircraft, with 12 round trips per week to Denver, Colorado, via Alamosa or 

Pueblo, Colorado; Santa Fe, New Mexico; or nonstop service between Silver City and Phoenix, 

Arizona, for the period from December 1, 2012, through November 30, 2014, at an annual 

subsidy rate of $2,098,460. Great Lakes’ current schedule shows only 7 round trips each week 

to Phoenix. According to published schedules, Great Lakes has had 7 round trips per week in 

place since April 2014. 

Order 2012-11-33, as well as the complete public file for EAS at Silver City, may be accessed 

online through the Federal Docket Management System at www.regulations.gov, by entering 

“DOT-OST-1996-1903” in the “SEARCH for: Rules, Comments, Adjudications or Supporting 

Documents:” field. 

Request for Proposals

As the end of the current rate term approaches, we are here requesting proposals from air carriers 

interested in providing EAS at Silver City, with or without subsidy support, for a new term 

beginning December 1, 2014. Air carriers should file their proposals no later than August 12, 

2014. After that date, our staff will docket the proposals, thereby making them public. 

Additionally, we request each air carrier serve a copy of its proposal on the civic parties at Silver 
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City and on the other applicants. Shortly afterwards, we will provide a summary of the proposals 

to the community and ask them to submit any formal comments on this carrier-selection case. 

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

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 for their 

proposals. Air carrier proposals should be submitted to the Department with all materials 

merged into a single document. In addition, because the document 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 requested. 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 encouraged 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 communities and the Department.2

Proposals should provide sufficient capacity to accommodate historical levels. Specifically, 

we request proposals for 12 round trips a week between Silver City and Denver, Phoenix, or 

another suitable hub airport, with 19-seat aircraft or larger. Alternatively, we will accept 

proposals consisting of additional frequencies if smaller aircraft (9-passenger) are 

contemplated. We encourage proposals that meet these guidelines in an efficient manner. Air 

carriers are also welcome to propose more than one service option, if they choose. They also 

need not limit themselves to these requirements if they envision other, potentially more 

attractive service possibilities -- different hubs or length of contract, for example -- with 

subsidy requirements that remain competitive. 

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

have summarized historical passenger levels at Silver City in Appendix B. In the most recent 

12-month period for which data are available (April 1, 2013, through March 31, 2014) Silver 

City generated 3,662 total origin and destination passengers, or an average of 5.8 enplanements 

per day.3

 

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

EAS without subsidy and we determine that service can be reliably provided without such compensation, we 

usually 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 for an eligible place not in Alaska, 49 U.S.C. § 41733(c)(1) 

directs us to consider five factors: (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 representing 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 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, and the Continuing Appropriations Act, 2014, Public Law No. 

113-46, 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. 

3 In calculating enplanements per day, we take total annual origin and destination passenger numbers and divide 

by two to get passengers in one direction (enplanements at the EAS community), and then by 313 days to get 

average daily enplanements at the EAS community. 
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Interested air carriers should prepare their proposal with every expectation that their initial 

proposal will also be their final and only proposal. We retain the discretion to negotiate 

proposals with air carriers when we deem it desirable; in such cases we will give all 

applicants the same opportunity. We also retain the discretion to reject outright all 

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

anticipate that negotiation or rejection will remain only occasional exceptions to the rule. 

Other Air Carrier Requirements 

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces and nondiscrimination. Consequently, all air carriers 

receiving Federal subsidy to support EAS must certify that they are in compliance with 

Department regulations regarding drug-free workplaces and nondiscrimination, and those air 

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 air carriers that 

plan to submit proposals involving subsidy should submit the required certifications along 

with their proposals. Interested air 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 

air carriers that do not submit these documents.4

Community Comments

Civic officials and the State 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, as they will not be able to amend them after 

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

ask them to submit their final comments shortly after August 12, 2014, the due date for air 

carrier proposals. 

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

Director, Office of Aviation Analysis. 

ACCORDINGLY,

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

City/Hurley/Deming, New Mexico, submit their proposals, with or without subsidy requests, 

no later than August 12, 2014. The proposals should be emailed to: EAS@dot.gov with the 

title “Proposal to Provide Essential Air Service at Silver City, NM;”5

 

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). The certifications are available 

on the web at http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/essential-air-service. 

5 Questions regarding filings in response to this Order should be directed to Mr. Scott Faulk at scott.faulk@dot.gov 

or (202) 366-9967. 
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2. Docket DOT-OST-1996-1903 will remain open until further Order of the Department; and 

3. The Department will serve copies of this Order on the civic officials of Silver City, Hurley, 

and Deming, New Mexico, the Director of Grant County 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 

An electronic version of this document is available

online at www.regulations.gov.
Appendix A 

AREA MAP 

Maps generated by the Great Circle Mapper - copyright © Karl L. Swartz. 
Appendix B 

Silver City/Hurley/Deming, New Mexico1

Historical Traffic 

Year Quarter Enplanements Deplanements Total

2011 2 461 453 914

2011 3 450 406 856

2011 4 384 364 748

2012 1 349 353 702

1644 1576 3220

Year Quarter Enplanements Deplanements Total

2012 2 372 371 743

2012 3 363 354 717

2012 4 279 314 593

2013 1 202 195 397

1216 1234 2450

Year Quarter Enplanements Deplanements Total

2013 2 436 426 862

2013 3 484 467 951

2013 4 548 531 1079

2014 1 394 376 770

1862 1800 3662

 

1 Source: Bureau of Transportation Statistics; Schedule T-100. 
Appendix C 

Example of General Terms and Conditions for Essential Air Service 

The air 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 air 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 air 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 air 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 air carrier to provide service on these routes. The air 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 air 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 air 

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 31st; August claims must be submitted by November 

30th, and so on.