Order 2012

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Served: May 2 , 2012



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 2nd day of May , 20 1 2

ORDER EXTENDING SERVICE OBLIGATION

Summary By this O rder, the Department of Transportation extends the Essential Air Service (EAS) obligation of Chautauqua Airlines, Inc., a wholly owned subsidiary of Republic Airways Holdings and doing business as Frontier Airlines (Chautauqua), at Rhinelander, Wisconsin, for an additional 30 days, through June 9 , 2012.

Background On September 12, 2012, Chautauqua filed a 90

- day notice with the Department of its

intent to terminate its unsubsidized service at Rhinelander effective December 11, 2011. By Order 2011

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- 15, issued October 20, 2011, the Department prohibited Chautauqua from suspending service through December 11, 2011

, and requested proposals from carriers interested in prov iding replacement service.

By Order 2012

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- 5, March 7, 2012, the Department selected Great Lakes Aviation, Ltd. to provide EAS at Rhinelander and Ironwood, Michigan/Ashland, Wisconsin, for a two

year period beginning when it inaugurates full service at bo th communities through the

end of the 24 th month thereafter

. T he carrier transition may not be completed by May 9

, 2012 , the end of the current ( fif th ) 30

- day hold

- in period. In accordance with

49 U.S.C. 41734(c), we must extend Chautau qua’s service obli gation for an additional 30 days, or until replacement service actually begins, whichever occurs first.

This Order is issued under the authority delegated in 49 CFR 1.56(a).

ACCORDINGLY,

1. We require Chautauqua Airlines, Inc., a wholly owned subsidiary of Republic Airways Holdings and doing business as Frontier Airlines , to maintain its current level of service Essential Air Service at :

RHINELANDER, WISCONSIN

Under 49 U.S.C. 41731 et seq

. D ocket DOT

- OST

- 2011

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-

at Rhinelander, Wisconsin , as set forth in Appendix A, for an addi tional 30

- day period through June 9

, 2012, or until a carrier capable of provi ding reliable EAS actually begins service, whichever is first 1 ;

2. We direct Chautauqua Airlines, Inc., a wholly owned subsidiary of Republic Airways Holdings and doing business as Frontier Airlines to retain all books, records, and other

source and summ ary documentation to support subsidy claims for payment, and to preserve and maintain such documentation in a manner that readily permits its audit and examination by representatives of the Department. Such documentation shall be retained for seven years from the service date of this Order or until the Department indicates that the records may be destroyed, whichever comes first. Copies of flight logs for aircraft sold or disposed of must be retained. The carrier may forfeit its compensation for any

clai m that is not supported under the terms of this Order ;

3. This Docket will remain open until further Order of the Department; and

4. We will serve copies of this O rder on t he parties listed in Appendix B.

By:

SUSAN L. KURLAND Assistant Secretary for Aviation

and International Affairs

(SEAL)

An electronic version of this document is available

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

1 In accordance with 49 U.S.C. 41734(c), we will extend Chautauqua’s service obligation for successive

30

- day periods as necessary until replacement service actually begins.Appendix A

Chautauqua Airlines, Inc., d/b/a Frontier Airlines

Provision of Essential Air Service at Rhinelander, Wisconsin Summary of Service To Be Provided

Effective Period : Beginning December 1 2 , 201 1 until further Department action

Scheduled Service : 1 2 nonstop round trips each week to Milwaukee Aircraft type: Embraer 135 (37

- seats) or Embraer 145 (50

- seats)

. Intermediate stops and upline service : No service to any other intermediate point is contemplated under the terms of the carrier’s proposal; accordingly, no such service may be provided on subsidized flights without prior Department approval. Timing of flights: Flights must be well

- timed and well

- spaced in orde r to ensure full compensation.Appendix B

SERVICE LIST

Chautauqua Airlines, Josh Pascoe

Frontier Airlines, Daniel Shurz Rhinelander/Oneida County Airport, Joseph Brauer