Order 2013-6-19

Served: June 26, 2013

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 26th day of June, 2013

ORDER REQUESTING PROPOSALS

Summary

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

providing Essential Air Service (EAS) at Vernal and/or Moab, Utah, for a new contract

period, beginning January 1, 2014, with or without subsidy. (See Appendix A for a 

service area map). Carriers should file their proposals no later than July 24, 2013.

Background

By Order 2011-12-19 (December 23, 2011), the Department reselected Great Lakes 

Aviation, Ltd. (Great Lakes), to provide subsidized EAS at Vernal and Moab utilizing

twin-engine, 19-passenger Beech 1900D aircraft, through December 31, 2013. Under 

that Order, Great Lakes provides 12 weekly nonstop round trips between each community 

and Denver for an annual subsidy rate of $1,299,194 at Vernal and $1,816,486 at Moab. 

The combined annual subsidy rate for both communities totals $3,115,680.

Request for Proposals

As the end of the current contract approaches, the Department is requesting proposals 

from carriers interested in providing EAS at Vernal and/or Moab with or without subsidy, 

for a new contract period beginning January 1, 2014. Carriers should file their proposals 

no later than July 24, 2013. Staff will then docket the proposals, thereby making them 

public, and shortly afterwards will provide a summary of the proposals to the 

communities and ask them for their comments. We will give full consideration to all 

proposals that are timely filed.1

 1 In cases where a carrier proposes to provide basic EAS without subsidy and we determine that service can 

be provided reliably without such compensation, we typically do not proceed with the carrier-selection case. 

Instead, we generally rely on that carrier’s subsidy-free service as proposed.

Essential Air Service at:

VERNAL, UTAH

MOAB, UTAH

Under 49 U.S.C. § 41731 et seq.

Docket DOT-OST-1997-2706

Docket DOT-OST-1997-2827
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 re-solicit a new 

round of proposals. However, negotiation and rejection are only occasional exceptions to 

the rule.

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 these two communities, the Department expects proposals consistent with 

what the communities currently receive (12 weekly round trips with 19-seat aircraft) with 

continued service to a suitable hub airport that provides numerous connecting 

opportunities to the national air transportation system. In order to attract as broad an 

array of proposals as possible, we would also entertain proposals using smaller aircraft 

with increased frequencies. We encourage proposals that meet these guidelines in an 

efficient manner. 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.

Service and Traffic History

Some historical traffic data for Vernal and Moab are provided in Appendix B. During the 

year ended December 31, 2012, Vernal averaged 22.9 enplanements per day, and Moab

12.9. Both communities’ enplanements are trending upward since the year ended 

December 31, 2009.

 2 In selecting a carrier to provide subsidized essential air service, 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, 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 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.
Filing Procedures

Carrier proposals should be submitted to the Department with all materials compiled into 

a single document. In addition, because the document will be published on 

Regulations.gov, each page should be formatted to be viewed online.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing 

lobbying activities, drug-free workplaces, and nondiscrimination.3 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) 366-5903.4

Community and State Comments

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

prospective applicants to contact the communities before they submit their proposals so 

that they can tailor them to the communities’ 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 and ask them to submit their final comments shortly after July 24, 2013, 

the end of the deadline for 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.

 

3 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; (3) 49 CFR Part 27 --

Nondiscrimination on the Basis of Disability in Programs and Activities Receiving or Benefiting from 

Federal Financial Assistance; (4) 14 CFR Part 382 -- Nondiscrimination on the Basis of Disability in Air 

Travel; and (5) 49 CFR Part 29 -- Government-Wide Debarment and Suspension (Non-Procurement) and 

Government-Wide Requirements for Drug-Free Workplace (Grants).

4 The certifications are also available on the web at http://www.dot.gov/policy/aviation-policy/smallcommunity-rural-air-service/essential-air-service
ACCORDINGLY,

1. We request that carriers interested in providing Essential Air Service at Vernal and/or

Moab, Utah, submit their proposals, with or without subsidy requests, no later than 

July 24, 2013. The proposals should be e-mailed to: EAS@dot.gov with the title 

“Proposal to Provide Essential Air Service at Vernal and/or Moab, Utah”;5

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

3. We will serve copies of this Order on the mayors and airport managers of Vernal and 

Moab, Utah, 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

on the World Wide Web at http://www.regulations.gov

 5 Questions regarding filings in response to this order may be directed to A.J. Muldoon at (202) 366-1058

or albert.muldoon@dot.gov. 
Appendix A

AREA MAP
Appendix B

Historical Enplanements

Vernal, UT1

YearEnded

Origin & 

Destination 

Passengers

Annual 

Enplanements2

Average 

Enplanements 

per Service Day3

31-Dec-08 10,430 5,215 16.6

31-Dec-09 7,566 3,783 12.1

31-Dec-10 8,760 4,380 14.0

31-Dec-11 10,843 5,422 17.3

31-Dec-12 14,331 7,166 22.9

Historical Enplanements

Moab, UT1

YearEnded

Origin & 

Destination 

Passengers

Annual 

Enplanements2

Average 

Enplanements 

per Service Day3

31-Dec-08 5,760 2,880 9.2

31-Dec-09 3,729 1,865 6.0

31-Dec-10 5,469 2,735 8.7

31-Dec-11 7,009 3,505 11.2

31-Dec-12 8,078 4,039 12.9

Notes:

1. Source: US DOT Bureau of Transportation Statistics, Form T-100 Market. 

Service between each community and DEN.

2. Origin-destination passengers divided by two.

3. Annual enplanements divided by 313 annual service days (314 in leap years).
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 solicitation beyond [DATE]. The 

Government’s obligation for performance under this solicitation beyond [DATE], is contingent upon 

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 funds are not made available for

performance beyond [DATE], the carrier will receive notice in writing by the Department. 

All claims for payment must be submitted within 60 days of the last day of service provided under 

this Order.