Order 2013-10-15

Served: October 29, 2013

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 29th day of October, 2013

Essential Air Service at

CODY, WYOMING

Under 49 U.S.C. 41731 et seq. 

DOCKET DOT-OST-2011-0121

ORDER PROHIBITING TERMINATION OF SERVICE AND 

REQUESTING PROPOSALS

Summary

By this Order, the Department is (a) prohibiting SkyWest Airlines, operating as United Express 

(SkyWest/United Express), from terminating its unsubsidized service at Yellowstone Regional 

Airport in Cody, Wyoming, for 30 days beyond the end of the 90-day notice period 

(November 28, 2013) and (b) requesting proposals from air carriers interested in providing 

year-round Essential Air Service (EAS) at Cody, with or without subsidy. Proposals are due 

November 26, 2013.

Background

On June 27, 2011, SkyWest Airlines, operating as Delta Connection (SkyWest/Delta 

Connection) filed a 90-day notice of its intent to terminate service as to Salt Lake City, 

effective September 25, 2011. At the time of the filing, SkyWest/Delta Connection provided 

two daily nonstop round trips (14 a week) to Salt Lake City International Airport on 30-seat 

EMB-120 Brasilia (Brasilia) aircraft. In addition, SkyWest/United Express provided one round 

trip a day to Denver International Airport (Denver), with a 50-seat Canadair regional jet aircraft 

year-round and one round trip a day during the four-month peak season using a 30-seat 

Brasilia.

In response to SkyWest/Delta Connection’s filing, we issued Order 2011-8-26, 

August 30, 2011, prohibiting the suspension and requesting proposals from air carriers 

interested in providing EAS at Cody. Because SkyWest/United Express operated two daily 

round trips to Denver four months of the year and one daily round trip to Denver the other eight 
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months, we requested proposals for only one round trip a day for eight months of the year. In 

response to that Order, we received a proposal from the incumbent, SkyWest/Delta Connection.

By Order 2011-11-24, issued on November 18, 2011, the Department selected SkyWest/Delta 

Connection to provide EAS at Cody from October 4, 2011, through May 31, 2012, and from

October 4, 2012, through May 31, 2013, for an annual subsidy of $352,058. Under the EAS 

subsidy contract, SkyWest/Delta Connection provided Cody one daily round trip (seven a 

week) to Salt Lake City International Airport using 50-passenger Canadair Regional Jet 200 

aircraft; the service to Denver was provided subsidy-free.

By Order 2013-4-18, issued on April 25, 2013, the Department re-selected SkyWest/Delta 

Connection to provide EAS at Cody to Salt Lake City using 50-passenger Canadair Regional 

Jet 200 aircraft from October 1, 2013, through May 31, 2014, and October 1, 2014, through 

May 31, 2015, for an annual subsidy of $627,696.

On August 1, 2013, SkyWest/United Express filed a 90-day notice of its intent to terminate its 

subsidy-free service to Denver, effective November 1, 2013. This would leave Cody with only 

one daily round trip (seven a week) to Salt Lake City for eight months of the year. Since Cody 

is guaranteed a minimum of 12 round trips a week to a large- or medium-hub, the Department 

has decided to solicit a new round of proposals. 

Rather than solicit proposals for the difference in service, it would be more convenient for the 

community if we consolidated all of its EAS into one contract, with one start date and one end 

date. Therefore, we are hereby soliciting proposals from air carriers to provide all of Cody’s 

subsidized service.

Hold-In

SkyWest/United Express’s proposed termination of its Denver service at Cody would cause 

service levels to drop below the EAS guaranteed levels established by the Department. Thus, 

the Department must prohibit the air carrier from terminating such service at the end of its 90-

day notice (November 28, 2013). We will require SkyWest/United Express to continue to 

maintain its current level of service at Cody for successive 30-day periods until we have 

completed processing the air carrier-replacement case and the selected air carrier has actually 

started service.1

Request for Proposals

Air carriers should file their proposals no later than November 26, 2013. After that date, our 

staff will docket proposals, thereby making them public, and shortly afterwards will provide a 

summary of the proposals to the community and ask them for their final comments. We will 

give full consideration to all proposals filed in a timely manner.2

 1 In accordance with 49 U.S.C. 41734(c), we will extend SkyWest/United Express’ service obligation for 

successive 30-day periods as necessary until replacement service actually begins.

2 Carriers should not expect the Department to accept late filings. In cases where an air 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 do not proceed with air carrier-selection case. Instead, we simply rely on 

that carrier’s subsidy-free service as proposed.
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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 solicit a new round of 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 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. 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 that 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 community and the Department.3

Air carriers are also welcome to propose more than one option, if they choose; they need not 

limit themselves to those requirements if they envision other, potentially more attractive service 

possibilities -- different hubs, frequency or equipment, for example -- with subsidy 

requirements that remain competitive. 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 desirable to 

the community and meets the operational needs of the airlines.

Proposals should provide sufficient capacity to accommodate historical levels of traffic. In 

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

have provided a summary of historical passengers in Appendix B. During the year ended 

June 30, 2013, Cody averaged 94 enplanements per day. The community has expressed to the 

Department that their preference is to maintain the current service to both the Denver and Salt 

Lake City hubs. Therefore, in lieu of the typical two or three round trips a day to a single hub, 

we are requesting the same total frequency levels, but split between Denver and Salt Lake City. 

However, we would also accept proposals with service to either Denver or Salt Lake City. Air 

carriers should propose year-round service, with two round trips a day (14 a week) using 30 

seat or larger aircraft; or four round trips a day (28 a week) using 15-29 seat aircraft. We 

would also entertain proposals with 8/9 seat aircraft and additional frequencies. As always, we 

will formally solicit the community’s views on any service options we receive before making a 

long-term carrier selection decision.

 3 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: (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; (4) community views; and (5) whether 

the carrier has included a plan in its proposal to market the service. 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 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. 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.
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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 to support 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 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 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 carriers that 

do not submit these documents.5

Community and State Comments

Civic officials are welcome to submit comments on the proposals at any time. 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 November 26, 2013, the due date for carrier proposals.

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

ACCORDINGLY,

1. We prohibit SkyWest/United Express from suspending one round trip a day to Denver, at 

the end of the 90-day notice period, and require it to maintain service at the community, as set 

forth in Appendix D, for an initial 30-day period through November 28, 2013, or until an air 

carrier capable of providing reliable EAS actually beings service, whichever is first;

2. We request that air carriers interested in providing EAS at Cody, Wyoming, submit their 

proposal, with or without subsidy requests, no later than November 26, 2013. The proposal

should be emailed to: EAS@dot.gov with the title “Proposal to Provide EAS at Cody, 

Wyoming”;6

 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).

5 The certifications are available online under “Reports and Publications” at http://www.dot.gov/policy/aviationpolicy/small-community-rural-air-service/essential-air-service. 6 Questions regarding filings in response to this order should be directed to Michael Martin at 202-366-6494, or 

via email at michael.f.martin@dot.gov.
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3. This docket will remain open until further order of the Department; and

4. The Department will serve a copy of this Order on the Mayor of Cody, the airport manager 

at Yellowstone Regional Airport, and the service list for this Docket.

By:

SUSAN L. KURLAND

Assistant Secretary for

Aviation and International Affairs

(SEAL)

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

Historical Origin-Destination Plane Traffic1

Cody, Wyoming

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per Day

3 2010 10,102 11,015 21,117 134

4 2010 6,303 6,599 12,902 84

1 2011 5,007 5,069 10,076 65

2 2011 7,824 7,418 15,242 96

Annual 

Totals 29,236 30,101 59,337 95

3 2011 9,311 9,929 19,240 122

4 2011 5,247 5,602 10,849 70

1 2012 4,684 4,838 9,522 61

2 2012 7,449 6,943 14,392 91

Annual 

Totals 26,691 27,312 54,003 86

3 2012 9,840 10,464 20,304 129

4 2012 5,854 6,287 12,141 79

1 2013 4,970 5,321 10,291 66

2 2013 8,318 7,685 16,003 101

Annual 

Totals 28,982 29,757 58,739 94

 1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100.
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 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 31; August claims must be submitted by 

November 30, and so on.
Appendix D

Essential Air Service to be Maintained at Cody, Wyoming

Effective Period: November 29, 2013, until further Department action

Scheduled Service: One round trip a day to Denver

Aircraft: 50-seat Canadair Regional Jet 200 (CRJ 200)