Order: 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, 2015

ORDER REQUESTING PROPOSALS

Summary

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

proposals from air carriers interested in providing Essential Air Service (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, 2015, 

with or without subsidy. (See Appendix A for a map). Air carriers 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 provide 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 complete 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 “Search for Rules, Comments, Adjudications, 

or Supporting Documents” field.

Request for Proposals

As the end of the current contracts 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, 2015. Carriers should 

file their proposals no later than June 4, 2015. Staff will then docket the proposals, thereby 

Essential Air Service at

CAPE GIRARDEAU/SIKESTON, MISSOURI

MARION/HERRIN, ILLINOIS

QUINCY, ILLINOIS/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 will provide a summary of the proposals to the 

communities 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 also 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. 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 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 communities

and the Department.2

Proposals 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 Appendix B. During the calendar year 

ending December 31, 2014, Cape Girardeau averaged 20 enplanements per day, Marion and 

Quincy averaged 31 enplanements per day.3 The Department therefore expects proposals that 

are consistent 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 expect the Department to accept late filings. 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 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 

Appropriations Act, 2014, Public Law No. 113-76, and continued in the Continuing Appropriations Resolution, 

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 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 Source: Bureau of Transportation Statistics, Schedule T-100.
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system. For air carriers proposing service with 9-passenger aircraft, the Department expects 

24 weekly round trips for Cape Girardeau, and 36 weekly round trips for Marion and Quincy. 

For air carriers proposing 19-passenger or larger aircraft, the Department expects proposals 

for two round trips a day (12 to 14 per week). 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.

Community Comments

The communities and States 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 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 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 EAS 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 contract 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

This Order is issued under authority delegated in 49 CFR Part 1.25a(b) and re-delegated 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 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) 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-communityrural-air-service/essential-air-service. 
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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, 2015. 

The proposals should be e-mailed to: michael.f.martin@dot.gov;6

2. These dockets will remain open until further Order of the Department; and

3. We will serve copies of this Order 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 Regional 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

online at www.regulations.gov. 

 6 Questions regarding filings in response to this Order may be directed to Michael Martin at (202) 366-6494 or

michael.f.martin@dot.gov. 
Appendix A

AREA MAP

Maps 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

2011 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 1,446 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

2014 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 2,222 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 9,450 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 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 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 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 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.

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, 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.